Gas prices hit new record & experts warn they may go higher

“Liquid fuel has turned into liquid gold”
Gas Pump (GFX)
Gas Pump (GFX)(MGN)
Published: May. 10, 2022 at 7:56 AM CDT
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MADISON, Wis. (WMTV) - Drivers will need to dig deeper than ever before when they need to fill their tanks. GasBuddy reports gasoline prices nationwide set a new record high on Tuesday, having reached $4.36 per gallon.

The company is warning people to expect these high prices not only to stick around for a while, but to keep climbing as the Memorial Day weekend and the unofficial start of summer approaches.

“Liquid fuels have turned into liquid gold, with prices for gasoline and diesel spiraling out of control with little power to harness them as the imbalance between supply and demand globally continues to widen with each passing day,” GasBuddy’s head of petroleum analysis Patrick De Haan said.

De Haan noted that the war in Ukraine leaves Russian oil increasingly off the market at a time when more and more people are planning summer road trips. In just the last seven days, the national average price of fuel rose over 15 cents per gallon.

“There’s little, if any, good news about fuel prices heading into summer, and the problem could become worse should we see an above average hurricane season, which could knock out refinery capacity at a time we badly need it as refined product inventories continue to plummet,” he continued.

Diesel prices have already reached unprecedented territory, having topped $5.50 per gallon. Its rise also creates secondary effects for consumers as much of that added cost for fueling delivery vehicles will likely end up raising prices on other goods. The national average for diesel hit another record of $5.54 a gallon Monday, which is up 22 cents in a week and 49 cents in a month, according to AAA.

On Monday, GasBuddy reported gas in Madison surged nearly 18 cents in the prior week and is back over $4 per gallon.

Russia’s invasion of Ukraine in late February sent prices surging as investors braced for oil supply disruptions caused by the war and embargoes on Russian energy.

The Biden administration responded by unleashing a record amount of oil from U.S. emergency oil stockpiles, announcing March 31 that 1 million barrels a day would be released for six months.

The ongoing effort helped cool oil and gasoline prices off for a bit, but the relief was fleeting and relatively minor.

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