What a Russian invasion could mean for gas prices in the US
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CULVER CITY, Calif. (NewsNation Now) — If you’re expecting gas prices to drop anytime soon, you might want to hold your breath.
According to the American Automobile Association, gas prices in the US are averaging $3.53 a gallon, the highest average since 2014. In California, gas prices have reached an all-time high, with drivers paying up to $4.75 at the pump.
Gasoline prices are expected to rise as high as $5 per gallon in the Golden State in the weeks ahead, if the hostilities over Ukraine continue.
One of the biggest concerns in the Russia-Ukraine conflict is that Russia could limit the sales of oil and other energy products to Europe in response to Western sanctions.
The global effect of the invasion could lead to higher consumer prices for virtually everything. However, consumer confidence remains high in the U.S., as COVID-19 numbers continue to decline across the nation.
According to oil and gas industry expert Jay Young, strict regulations and lower domestic output in the U.S. will fuel a price surge even more.
“Rig count is down and we’re not drilling for oil and gas,” Young said. “So when we need it, we’re not gonna have it … and we’re gonna have $7 gas prices or higher in California.”
Patrick De Haan, an industry analyst at GasBuddy, says California is set to see one of the biggest price hikes in a long time.
“California, when all is said and done, has taxes and fees and carbon management programs that basically add over a dollar per gallon to the cost of gasoline,” De Hann said.
The statewide average in California is $4.75 a gallon, over a dollar more than prices in 2020, according to AAA.
Prices are also expected to soar as a result of warm weather, with summer travelers boosting demands, and refineries doing maintenance.
Daniel Turner of the organization Power the People believes further conflict between Ukraine and Russia could bring about gas prices not seen in years.
“It could easily get to $125 a barrel,” Turner said.
In terms of what that means for the price at the pump, he said that depends on a variety of factors.
“The average in America would be $4.75. It would obviously be higher in California, less in Louisiana,” Turner said.
