$5 per gallon gas is here: AAA says U.S. average hits new high

NEW YORK –

The U.S. common value for a gallon of gasoline has hit $5 for the primary time ever.

Auto membership AAA said the typical value on Saturday was a fraction of a penny over $5.00. Motorists in some components of the nation, particularly California, are paying far above that.

The nationwide common value has jumped 19 cents in simply the previous week, and it’s up $1.93 from this time final 12 months.

The excessive price is taking a toll on individuals who want their automobiles to earn a residing.

It was unhealthy sufficient for cab driver Joseph Pierre when it price $25 to fill his tank. Now he shells out $40 or $45.

“I am dropping cash as a result of some passengers I choose up, they do not care about that, they do not tip you,” Pierre said Saturday as he pumped fuel at a BP station in Brooklyn.

Katisha Thompson, who paid $79 for 13 gallons of premium on the identical station, said the worth is “changing into overbearing.”

“It is quite a bit, particularly when you find yourself making an attempt to feed a household,” she said. “And it is not simply fuel. It is groceries, the whole lot goes up.”

Individuals are nonetheless burning much less gasoline than they did earlier than the pandemic, with many individuals nonetheless working from residence as an alternative of commuting. However there are early indicators that larger costs is likely to be affecting drivers’ habits, too.

The quantity of gas consumed final week was down 3% from the earlier week and 6% from this time final 12 months, based on preliminary figures from the Oil Value Data Service.

There are a number of causes for the surge in gasoline costs.

Individuals usually drive extra beginning round Memorial Day, so demand is up. World oil costs are rising, compounded by sanctions in opposition to Russia, a number one oil producer, due to its battle in opposition to Ukraine. And there are limits on refining capability in the US as a result of some refineries shut down throughout the pandemic.

Add all of it up, and the price of filling up is draining cash from Individuals who’re going through the very best fee of inflation in 40 years.

California has the very best common value, at $6.43, based on AAA. The bottom common is Mississippi, at $4.52.

Whereas that is the primary time breaking the $5 barrier, it is nonetheless not a document when inflation is taken under consideration. Fuel peaked at $4.11 a gallon in July 2008, which might be equal to about $5.40 a gallon at the moment.

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Koenig reported from Dallas.