Average gas price hits new record high on Tuesday

[left-of-center2012]

Source: The Hill

The average price of gas in the U.S. rose by 10 cents per gallon from Monday to Tuesday,
hitting a record $4.17 per gallon as President Biden announced a ban on Russian oil, natural gas and coal imports in response to the country's invasion of Ukraine.

According to AAA national average gas price monitor,
the national average is up 55 cents per gallon since last week.

The record was previously set in July 2008 at $4.103 per gallon, though that record was also slightly surpassed Monday, reaching $4.104 a gallon.

While the price of gas was already on the rise before Russia attacked Ukraine, primarily due to an increase in demand amid states lifting COVID-19 restrictions, prices have only continued to surge since the invasion.

Read more: https://thehill.com/policy/energy-environment/597342-average-gas-price-hits-new-record-high-on-tuesday

[walkingman]

1. Oil companies in the US and around the world need to increase production. They

are making record profits because of the recovery from Covid and the Ukrainian War - not because of anything they have done. Instead of using the HUGE profits to increase production they use to to do stock buybacks.

A windfall profits tax should be imposed ASAP and subsidies shold be stopped immediately. The idea of subsidizing oil companies is nothing more than a political ploy to some of their biggest donors.

[Emile]

13. They still are not up to the levels they were pumping before the pandemic.

[Blues Heron]

2. whats the point in comparing nominal prices from years ago?

you need to adjust for inflation for a proper comparison. You don't compare the price of hamburger in 1955 to now without first adjusting for inflation. If you don't adjust, it seems like things are always at a record high. Because prices are always going up with inflation.

[moose65]

12. Yep

Inflation needs to be accounted for.

The $4.11 per gallon price in 2008 would be about $5.30 today. We're not nearing that level, yet.

[IronLionZion]

3. Great time for a nice trucker convoy to be circling the beltway

which is another Qonspiracy, that they're jacking up prices all over the world to screw the few dumbass truckers on their diesel costs.

[oldsoftie]

4. WHY isn't the Administration telling the oil companies to increase output???

Its LONG past time.
Instead we get a statement about "don't price gouge". Thats fine, but thats NOT the biggest problem right now. Supply & instability is.
GET ON IT

[IronLionZion]

6. Doesn't free market competition take care of that?

Seriously, wouldn't they increase output to profit from the high prices? The US isn't part of OPEC so there's no collusion to limit supply.

[oldsoftie]

14. Well, we're not producing as much as we were in 18-19. Why?

And OPEC needs to have a come to Allah moment themselves and increase their output.

[Justice matters.]

5. Sucks for drivers who need fuel to work, BUT...

I noticed a lot less traffic in town.

Maybe a lot less leisure driving. Good to reduce GHG emissions. Counterbalance for what's going on in that awful war for nothing (or for resource stealing, rather).

Can't afford driving for nothing? Get a bicycle and go out for rides with family and friends. Lose weight.

[durablend]

8. While some of you are being flip about this

Remember this is going to hit *everything*. Hope you don't need to eat or heat your house or anything like that.

[left-of-center2012]

10. And 'everything' includes the price of food

Just transporting food to your local grocery
The cost of transportation will go up
And the price of our food will go up.

[IronLionZion]

7. When oil prices went down in 2014

the right claimed Obama was killing oil drilling jobs because he's so mean. Not because OPEC was trying to kill the American oil industry, a plan which backfired badly by destroying Venezuela's economy. These conservatives didn't seem to rejoice much in the lower prices at the pump but instead complained about lower oil stock prices.

https://en.wikipedia.org/wiki/2010s_oil_glut

[Talitha]

9. Just paid $4.50 a gallon for non-ethanol, northcentral Wisconsin.

I'm in a rural area about an hour south of Minocqua.
IIRC, Diesel was $4.40 and regular ethanol was $4.10.
Didn't see any political stickers on the pump.
It was a BP station.

[Ford_Prefect]

11. Jumped 14 cents in 3 days here. Regular now @ $3.85/gal

Note that we do not have all of the road taxes/fees of some other locations and states. 8 days ago it was $3.45

The base price of refined gasoline is one thing. Added costs for various purposes such as road taxes make the local pump price what it is.