US Gas Prices Hit Nationwide Average $5 Per Gallon: Why Is This Happening?

According to the latest AAA report, the average retail price for regular gasoline has hit $5 per gallon on Saturday for the first time. 

Reports suggest that by the end of the week, prices reached $5 or more in nearly 20 states, with the highest prices on the West Coast. In California, the cost exceeds $6 a gallon.

The national average stood at $4.07 when gas prices began to climb on April 15. The current price reading from OPIS represents a 23% increase in less than two months.

Also Read: Why Exxon Mobil Looks Set For All-Time Highs As Gas Prices Soar

According to the AAA data, prices at the pump are 63 cents higher than they were a month ago and nearly $2 more than a year ago. 

With the ongoing Russia-Ukraine war, oil prices reached $120 per barrel this week. 

According to the report, factors that could have triggered the price increases are sanctions on Russia due to the war in Ukraine and a rise in fuel demand.

There is also the potential for further price spikes due to supply disruptions that may be caused during the Atlantic hurricane season.

Photo: Courtesy of Lynn Friedman on Flickr