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Why is the price of gas so high? AAA holds the national record

The national average price of a gallon of gasoline has risen 19 cents over the past week, up $ 1.93 from a year earlier.

NEW YORK – The national average price of a gallon of gasoline for the first time exceeded $ 5.

Auto club AAA, the average price on Saturday was $ 5.00, he said. In some parts of the country, especially in California, drivers pay many times more.

The national average price has risen 19 cents over the past week, up $ 1.93 from the same period last year.

There are several reasons for the rise in gasoline prices.

Americans usually drive more cars around Remembrance Day, so demand is growing. Global oil prices are rising with sanctions against Russia, a major oil producer, over the war in Ukraine. And there are restrictions on refining capacity in the United States, as some refineries were closed during the pandemic.

Add it all up, and the cost of replenishment drains the money of Americans facing the highest inflation in 40 years.

According to AAA, California has the highest average price – $ 6.43. The lowest average is Mississippi with $ 4.52.

Although this is the first time the $ 5 barrier has been broken, it is still not a record given inflation. Gas prices reached $ 4.11 a gallon in July 2008, which is about $ 5.40 today.

Consumer prices rose 8.6 percent last month from a year earlier, up 8.3 percent from April, the Labor Department said Friday. The new inflation rate, the highest since 1981, will increase pressure on the Federal Reserve to continue raising interest rates aggressively.

From month to month, prices rose 1% between April and May, much faster than the 0.3% increase from March to April. The high prices of everything from air tickets to restaurant meals to new and used cars have contributed to this increase. These price spikes have also boosted “core” inflation, excluding volatile food and energy prices. In May, core prices rose sharply 0.6% in the second straight month. Now they are 6% higher than a year ago.

Why is the price of gas so high? AAA holds the national record

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