Business
Gas prices reach $5 a gallon in first U.S. city
The last time the average national gas price was this high was during the Great Recession in July 2008
March 4, 2022 6:02pm
Updated: March 6, 2022 11:11am
On Friday, San Francisco became the first U.S. city to pay $5 for a gallon of gasoline, as oil prices rise amid the conflict between Russia and Ukraine.
The nation-wide average price for a gallon of gasoline increased 11 cents overnight, from $3.73 on Thursday $3.84 per gallon on Friday, according to AAA.
Only a week ago, the average price was $3.57. Last year, the average price was $2.75 a gallon.
The average price of gas in Alaska, California, Hawaii, Illinois, Nevada, New York, Oregon, Pennsylvania, and Washington is over $4 a gallon.
The last time the average national gas price was this high was during the Great Recession in July 2008, when a gallon of gasoline cost $4.10, reported USA Today.
"It's been quite ugly as gas prices rise nationally, but nowhere has the pain been more significant than California, where prices have breached the $5 gallon mark," Patrick De Haan, head of petroleum analysis for GasBuddy, told FOX Business.
According to De Haan, gas prices will continue to rise and might even reach $5.35 in March.
Russian oil only accounts for around 7% of U.S. oil imports. However, gas prices worldwide have been increasing as global oil markets have been affected by Russia’s invasion of Ukraine.
"Even though the U.S. and EU did not sanction Russia, the various elements of the supply chain are suppressing Russian departures," chief global analyst for the Oil Price information Service, Tom Kloza, told USA Today. "I would have argued that this year would see high gasoline prices under any circumstances but the de facto ban is the accelerant at the moment.
