Average US gas price hits $5 for first time
A gallon of gas is now at a record $5 nationwide in the US on average.
According to AAA's Saturday reading, a gallon of ordinary petrol now costs $5 on average throughout the country for the first time.
Gas prices have been gradually climbing over the previous eight weeks, and this current milestone represents the 15th consecutive day that the AAA gauge has reached a new high, and the 32nd time in the last 33 days.
When the latest round of price hikes began on April 15, the national average stood at $4.07. The current OPIS pricing reading reflects a 23% rise in less than two months.
Rising fuel costs are inflicting more than just agony at the pump for drivers. They are a significant cause of consumer prices for a wide variety of goods and services growing at the quickest rate in 40 years, according to the government's inflation report released on Friday.
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According to a University of Michigan study, consumer confidence reached a new low on Friday as a result of inflation. Concerns over what the Federal Reserve would do to combat inflation have caused US equities to plummet in recent months, wiping away billions of dollars in personal wealth.
While a national average of $5 is relatively new, $5 gas has grown uncomfortably typical in many countries.
According to OPIS data, which takes measurements from 130,000 US gas stations and is used to construct the AAA averages, 32% of stations nationally, or roughly one in every three, were charging more than $5 per gallon in readings on Friday. In addition, almost 10% of gas stations across the country charge more than $5.75 per gallon.
In Saturday's reading, the statewide average was $5 or higher a gallon in 21 states plus Washington, DC.
With the summer travel season starting, demand for gasoline is increasing, and with Russian oil imports shut off due to the Ukraine war, oil prices are skyrocketing on worldwide markets.
According to Tom Kloza, global head of energy analysis for the OPIS, the US national average for gasoline might reach close to $6 later this summer.
"Anything goes from June 20 to Labor Day," Kloza said earlier this week of the high demand for petrol as people go out for long-awaited vacations. "Come hell or high gas prices, people are going to take vacations."
California has historically had the highest statewide average, with the average standing at $6.43 per gallon in Saturday's measurements. However, the impact of rising costs is felt across the country, not only in California and other high-cost areas.