Gasoline prices in the US may rise to record levels due to the war in Ukraine

Americans can expect gasoline prices to rise to $5 a gallon in the coming weeks as oil prices continue to rise in the days following Russia's invasion of Ukraine, experts say. Writes about it Dailymail.

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“We are approaching $5 a gallon gas for the first time in history in a major city,” Patrick De Haan, head of oil analysis at GasBuddy, tweeted.

The national average soared to $3,72 as of March 3.

“It will happen in the next couple of weeks,” the oil analyst said, listing the cities most affected by the rise in prices. In this list were San Francisco (California), where on March 3 the average price exceeded $5 and reached $5,05 per gallon, and Los Angeles, where the price reached $5,01.

The national average as of March 3 is $3,72 a gallon, up 37 cents from February and about a dollar more than a year ago, according to the American Automobile Association (AAA). The increase over the year can also be attributed to inflation and supply chain problems, which were then exacerbated by the Russian invasion.

The current spike is unlikely to ease anytime soon, says De Haan, whose department is analyzing fuel prices for more than 150 filling stations in the US, Canada and Australia, as the conflict between Russia, one of the world's largest oil producers, and Ukraine intensifies.

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“For those who think that this gas price spike is somehow unique to the United States and that the president somehow decides to raise prices, this is a global price spike due to the loss of oil from a major producer,” De Haan said . “Prices are expected to continue to rise as the situation worsens further, which is likely to push prices higher.”

“The Russian invasion of Ukraine has raised high-level concerns that oil production could eventually be halted or even sanctioned by the world’s second-largest oil producer, cutting supply as demand rises,” De Haan said.

However, in US states with more expensive fuels, such as California and Nevada, motorists were already paying nearly $4,50 a gallon, the data shows, and in some cases more.

De Haan says that by the end of March, Americans will see the average rise to $4 a gallon, close to the highest national average of $4,11 recorded in July 2008 during the US Great Recession.

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California currently has the highest average gas prices of the 50 states, at $4,94 per gallon (6 cents from the $5 threshold), followed by Hawaii at $4,63 per gallon and Nevada at $4,13.

Russia is a major producer, hence the price fluctuations, which are exacerbated by the inevitable risks of a wider conflict, with more countries poised to join the fray.

“We believe that the Russian-Ukrainian war will increase inflationary pressures in the world and in the United States due to higher oil and gas prices,” said Brian Coulton, chief economist at Fitch rating agency.

Oil prices have risen amid shipping and supply problems caused by Russia's invasion of Ukraine, with both U.S. crude and Brent crude currently above $110 a barrel, the highest levels since 2011.

And a recent round of sanctions imposed by US officials on Russia's refining sector suggests barrel prices could continue to rise, pushing up gasoline prices.

According to the International Energy Agency, Russia is the third largest oil producer in the world and the largest exporter of oil to world markets.

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