Gas rates have again skyrocketed to new record highs in another hit to the U.S. economy. According to AAA, the nationwide average rate for regular gas went up more than 4 cents on May 9th to $4.37 a gallon, topping the previous record of $4.33 set on March 11.
NATIONAL AVERAGE GAS PRICES (AAA.com)
| Regular | Mid-Grade | Premium | Diesel | E85 | |
|---|---|---|---|---|---|
| Current Avg. | $4.432 | $4.794 | $5.072 | $5.560 | $3.841 |
| Yesterday Avg. | $4.418 | $4.777 | $5.062 | $5.557 | $3.832 |
| Week Ago Avg. | $4.279 | $4.639 | $4.921 | $5.510 | $3.716 |
| Month Ago Avg. | $4.083 | $4.497 | $4.773 | $5.019 | $3.544 |
| Year Ago Avg. | $3.028 | $3.346 | $3.618 | $3.150 | $2.548 |
HIGHEST RECORDED AVERAGE PRICE (AAA.com)
| Price | Date | |||
|---|---|---|---|---|
| Regular Unleaded | $4.432 | 5/13/22 | ||
| Diesel | $5.560 | 5/13/22 |
Gas costs are up 17 cents merely in the previous week. California, Nevada, and Hawaii have all reached approximately more than $5 per gallon. Diesel fuel also set an all-time record on Tuesday of $5.50 a gallon.
Today’s rise will simply add to inflationary pressures that have actually improved worries of an across the country recession, hammered monetary markets, and activated Americans’ views on the economy to wind up hesitating.
Gas rates had in fact dropped as low as $4.07 a gallon in April after President Biden purchased the release of oil from emergency situation reserves and as oil expenses cooled off. That relief was revealed to be momentary, as some market experts forecasted.
Gas expenses have really been up about 25% since the first part of 2022. According to the U.S. Energy Info Administration, gas rates, changed for inflation, would need to increase above $5.30 a gallon to break the records embedded in 2008.
This most recent increase in gas prices will likely get worse the country’s inflation concerns. The brand-new record highs will not be captured in Wednesday’s carefully seen inflation report.
Some professionals have actually declared that rates will go even higher in the months ahead. On Sunday, Andy Lipow, president of Lipow Oil Associates, told CNN he anticipates market prices will reach $4.50 a gallon in the next week to 10 days. He remembered that it may rise even higher in the following weeks.
“Oil prices are just getting swept up in the swift and sharp selloff across risk assets,” said Matt Smith, lead oil analyst Americas at Kpler.
Oil prices fell to $103.09 a barrel, possibly taking some pressure off of pump rates. The cost of gas doesn’t react as quickly, which suggests any relief will not be seen instantly.
