Gas Prices Are Going Up Again, And It’s Only Getting Worse

Gas prices reached and unfathomable new high and its just the beginning.

By Joseph Farago | Published

fuel tax holiday gas prices

Gas prices started to increase dramatically in the latter half of 2021. As people began commuting to work, the demand for fuel went up and never stabilized. On top of accelerating demand, the geopolitical conflict between Russia and Ukraine exacerbated gas prices worldwide since Russia is a massive exporter of gasoline. Though fuel prices mostly stabilized in April, the monetary jump for this essential product has started to rise again.

The war between Ukraine and Russia continues to create havoc in Eastern Europe. Many have felt the ripple effect of this devastating conflict, especially regarding gas prices. This Tuesday, American gas prices hit a record high, with the national average reaching $4.374 per gallon. It’s the highest recorded gas price average in American history, surpassing the previous record by a few cents. The last record-breaking amount was $4.31, documented in early March 2022.

The gas price average has gone up considerably since its slow incline at the beginning of 2021. A year ago today, the fuel per gallon cost was about three dollars. Now, the average is almost a dollar and a half more, while many states are experiencing five, six, and seven dollars per gallon expenses. As turmoil continues in Europe and inflation spirals out of control, there aren’t many tangible solutions provided by the US to deal with skyrocketing gas prices.

Most of the fuel’s lofty increases have to do with Russia and its natural gas reserves. Russia is one of the most prominent exporters of fuel, which has been difficult for many countries worldwide. As superpower nations have imposed sanctions on the Slovac country, the repercussions have been devastating for the average family dealing with inflation and the expansiveness of necessary goods. Barrels of crude oil from Russia has jumped to $100 each, considerably larger than usual. The price of these barrels hasn’t decreased since the beginning of Russia’s invasion and isn’t dropping anytime soon. The overall cost for these barrels has accelerated gas prices in the United States with no end in sight.

In the United States, Biden and his administration addressed the gas price situation with a couple of strategies to alleviate the climbing cost. The administration attempts to bump oil production in the US to ease the heightened demand. Though Biden plans to stabilize gas prices, not much has tangibly been done to produce more oil locally. The president has verbally encouraged OPEC+ and US oil producers to start outputting more gasoline, but that hasn’t had much success. Without the necessary funds given by Biden’s administration, US producers won’t be able to meet the needed demand for struggling families.

In March, Biden announced that the government would be releasing stored oil barrels in an attempt to lower national gas prices. The president was expected to release 180 million barrels from the national stockpile, which has been saved for specific emergencies. Publically stated in March, the administration added that one million barrels would be released per day to undermine climbing gas costs. It’s unknown how impactful this strategy has been or how many gas corporations have successfully obtained these barrels nationwide