Motorists should not expect any relief at the gas pump anytime soon.
AAA said Russia’s invasion of Ukraine has roiled the oil market, with crude spiking briefly to over $100 per barrel before settling back into the mid-$90s in trading earlier this week. The increase in the global price of oil has led to higher pump prices in the U.S. The national average for a gallon of unleaded gas has risen to $3.62, from $3.53 than a week ago.
A year ago, the national average price for the same grade fuel was $2.72. Pump prices will likely continue to rise as crude prices continue to climb, AAA said.
In Indiana, the statewide wide average on March 1 was $3.55, up from $3.36 a week ago. Regular unleaded fuel in Indiana a year ago was $2.72 a gallon.
“Russia’s invasion and the responding escalating series of financial sanctions by the U.S. and its allies have given the global oil market the jitters,” said Andrew Gross, AAA spokesperson. “Like the U.S. stock market, the oil market responds poorly to volatility. It’s an explosive situation, and a grim reminder that events on the far side of the globe can have a ripple effect for American consumers.”
According to new data from the Energy Information Administration, total domestic gasoline stocks decreased by 600,000 barrels to 246.5 million barrels last week. Meanwhile, gasoline demand rose slightly from 8.57 million barrels per day to 8.66 million barrels per day.
AAA said the increase in gas demand and a reduction in total supply contribute to rising pump prices. But increasing oil prices play the lead role in pushing gas prices higher.
The nation’s top 10 largest weekly increases: Michigan (+18 cents), South Carolina (+16 cents), Kansas (+15 cents), Missouri (+15 cents), Indiana (+14 cents), Illinois (+14 cents), Tennessee (+14 cents), Georgia (+13 cents), North Carolina (+12 cents) and Arizona (+10 cents).
The nation’s top 10 most expensive markets: California ($4.82), Hawaii ($4.54), Oregon ($4.02), Nevada ($4.02), Washington ($4.00), Alaska ($3.88), Illinois ($3.85), Arizona ($3.81), New York ($3.80) and Washington, D.C. ($3.77).
