Here’s how Russia’s invasion of Ukraine could impact gas prices in the U.S.
(Gray News) - Tensions half a world away are already driving up the price of a gallon of gas with no relief in sight.
While most drivers across the United States won’t necessarily see a drastic increase overnight, the price of gas is likely to go up 5 to 15 cents per gallon over the next couple of weeks, according to GasBuddy.
That price could be more dramatic if the situation between Russia and Ukraine escalates, potentially pushing the national average price of gas to over $4 a gallon by Memorial Day.
“Russia is one of the leading oil producers globally, behind only the United States and Saudi Arabia,” said Andrew Gross, AAA spokesperson.
Some experts fear Russia could cut off exports in retaliation for sanctions by the U.S. and the European Union.
“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,” Gross said.
According to GasBuddy, fuel prices have been going up the past few weeks in anticipation of the Russian invasion.
In general, gas stations have a hard time immediately passing off the higher prices, so they take on the costs initially and slowly increase costs over a one to two-week span.
According to GasBuddy, drivers are more likely to see a drastic increase at the pump during a major national disaster, like a hurricane. In this case, they anticipate seeing a gradual increase in price.
Many areas will soon start to switch to a summer blend of fuel that is more costly due to the EPA, adding to the price increases.
As gas prices go up, it’s likely costs for products delivered by trucks or planes could surge as well. You may see an increase in driver or delivery services like Uber, Lyft or Instacart.
GasBuddy says there could be some price relief later in the summer, depending on how the hurricane season shakes out. They don’t anticipate fuel prices to potentially start coming down until the fall, and even then only expect to see about a 10-cent decrease.
President Joe Biden has pledged to use every tool available to limit gas price hikes. His administration faces pressure to dip back into the strategic petroleum reserve.
“I want to limit the pain to the American people are feeling at the gas pump. This is critical to me,” Biden said.
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