Gas prices are close to breaking the record in the United States this week. The situation is similar across the globe. But, Why are gas prices rising so quickly and how high will they get? Read to find the answers.
Why are the gas prices rising?
On Tuesday, the national average for a gallon of regular gas broke the record in the United States. With the rising fuel prices, people are wondering how long the surge will last. According to AAA, the average cost for one gallon of gas is $4.06. The current rate is 45 cents higher than last week and six cents more than Sunday. However, experts believe that the price is going to eclipse the record later this week. The cost of fuel is also expected to keep rising throughout this year.
Several agents are factoring into why the gas prices are rising with the major reason being the Russia-Ukraine conflict. According to Patrick De Haan, the head of petroleum analysis at Gasbuddy, a fuel savings app, the sanction imposed on Russia has severe impacts on Russia’s ability to sell crude oil. Crude oil has a heavy influence on fuel prices. Since Russia is one of the major energy suppliers, this is affecting nations across the world. On Monday, a barrel of US crude oil settled at $119.40. However, stricter sanctions are going to result not only in higher fuel prices but also in rising prices of other commodities. In addition to the war sanctions, loosening of COVID-19 restrictions and summer breaks are also factoring in.
Burning questions: How high will it get? How long will this last?
Based on the average prices, experts believe that the worse is yet to come. A 2022 gasoline forecast predicts the average price per gallon to peak at $4.25 sometime around May 2022. Even if the prices start reducing, it will probably stay over the $4 mark till November. “It’s a dire situation and won’t improve any time soon. The high prices are likely to stick around for not days or weeks, like they did in 2008, but months.