Americans are spending about $375 million more on gasoline every day compared to a year ago, as prices continue to rise in the Pittsburgh area and across the nation, said Patrick De Haan, head of petroleum analysis for GasBuddy.
While there are concerns about how Russia’s actions in Ukraine could affect global oil production and, in turn, gas prices, De Haan said nuclear talks between Iran and global powers in Vienna could bring Iran’s crude oil back to the market and ease some supply concerns.
“While the proposition remains in the air for the time being, we’re also just a few weeks away from the traditional start of the spring surge in gasoline prices, brought on by the change to summer gasoline, seasonal maintenance at refineries and rising demand,” De Haan said. “The weeks ahead could be rather ugly with rising prices, especially if Russia pursues a strong-arm invasion of Ukraine.”
President Joe Biden on Tuesday announced sanctions against Russian banks and oligarchs, joining 27 European Union members levying their own set of sanctions targeting Russian officials Ukraine. The actions came after Russian troops moved into two separatist-held regions of Eastern Ukraine.
AAA said Russia will likely retaliate against financial sanctions led by the United States and its allies by withholding oil from the already tight world market.
“Russia is one of the leading oil producers globally, behind only the United States and Saudi Arabia,” AAA spokesperson Andrew Gross said. “And if they choose to withhold their oil from the global market, such a move would eventually be reflected in higher gas prices for American drivers.”
On Tuesday, AAA reported that the national average for a gallon of gasoline was $3.53, which is 4 cents more than a week ago, 21 cents more than a month ago and 90 cents more than a year ago.
The highest recorded average price was $4.11 in July 2008, according to AAA.
At an average of $3.73 per gallon, Pennsylvania is among the 10 most expensive gas markets in the nation, behind California ($4.74), Hawaii ($4.51), Oregon and Washington ($3.98), Nevada ($3.95), Alaska ($3.85), and New York ($3.75). The list is rounded out by Washington, D.C., at $3.72, and Arizona at $3.71, according to AAA.
GasBuddy was reporting the average in the Pittsburgh area was stable at about $3.67. That’s about 5 cents more than a week ago, 16 cents more than a month ago and about 72 cents more than a year ago.
A proposal has been made to suspend the 18.4-cents-per-gallon federal gas tax through the end of the year.
Pennsylvania assesses a nearly 58-cents-per-gallon tax.
