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After brief drop, gas prices back on the rise as diesel hits record high

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Posted at 9:52 AM, May 05, 2022
and last updated 2022-05-05 13:36:50-04

As the United States prepares to enter the summer travel season, AAA reported gas prices are rising again.

On Thursday, the cost of an average gallon of regular gas reached $4.25 a gallon, which is up more than a dime from a week ago. The price is still slightly lower than the all-time high of $4.33 reached on March 11.

Meanwhile, the average cost of a gallon of diesel fuel reached an all-time record of $5.47 a gallon on Thursday.

While global demand for gas slightly dropped, AAA noted that ongoing fears over Russian-produced oil being cut off coupled with COVID-19’s impact in China are contributing to the increase. Earlier this week, the European Union announced it is calling on member nations to move away from Russian energy.

While the United States itself did not receive a significant portion of its energy from Russia before implementing an embargo, much of Europe is much more dependent on Russian-produced oil. Europe cutting off Russian-produced oil could further reduce the supply of oil in the global market.

“As long as the supply remains tight, it will be hard for crude oil prices to fall and consumers will in turn face higher prices at the pump,” said Andrew Gross, AAA spokesperson. “It now costs drivers in the U.S. about $23 more to fill up than a year ago.”

AAA said that gas prices will likely remain high as long as oil prices remain above $100 per barrel.