U.S. petrol prices reached an all-time record on Tuesday, and experts expect the pain of the pump to subside anytime soon Gas prices hit a record.
The average price of regular gas in the U.S. was $ 4.37 per litre on Tuesday, according to AAA. Diesel prices also reached a record $ 5.55 per litre.
Tuesday’s price exceeds the previous record set in early March after Russia launched its offensive in Ukraine. Prepared for inflation, however, fuel prices have not yet surpassed the 2008 record, which could be more than $ 5 per litre today.
Rising prices at the tap include inflation pressure on U.S. consumers. The inflation rate reached a 40-year high in March after the consumer price index fell by 8.5% per annum.
“We have to get used to the high fuel prices,” Matt Smith, a data analyst at analytics firm Kpler, told USA TODAY. “We should not expect to see them go back to $ 2 a litre. It seems that those times are over. ”
When will the price of fuel go down?
Rated oil prices have taken a “big hit” recently, which could lead to lower gas prices next week, according to AAA spokesman Devin Gladden. The West Texas Intermediate crude reached a $ 99.76 barrel on Tuesday, down 3.2% from yesterday.
But over time, prices are not expected to return to pre-epidemic levels anytime soon.
“There is little, if any, the good news about fuel prices that will go up in the summer,” Patrick De Haan, head of petroleum research at GasBuddy, said in a statement released Tuesday.
De Haan added that prices could “be very bad” if the hurricane season, which begins next month in the Atlantic, damages the filter capacity.
INFLATION FOCUS: Biden cites inflation as a leading domestic factor, blaming Republicans for the lack of a system.
RESISTANCE: As prices rise, inflation rises and shares fall, you can still use your cash
$ 5 per litre is possible
Smith of Kpler said prices could continue to be more than $ 4 per litre, and noted that $ 5 per litre “could not be more than possible.”
“The price of fuel will remain high as long as oil prices remain at three digits,” he said. “It will hit the pocketbook more.”
Claudio Galimberti, senior vice president of analytics at research firm Rystad Energy, said the need to keep gas prices high, but that could change if inflation pressure worsens.
“Even at these high levels, prices are recovering. The problem I see is inflation,” Gas prices hit a record.
Why are electricity prices soaring?
Crude oil prices began to rise last week after the European Union indicated it was considering punishing Russian oil. In response, Western average prices sometimes rose to more than $ 110 as the market jeopardized the tightness of the oil supply.
“We have not seen such a rise in oil prices since Russia first invaded Ukraine,” said AAA’s Gladden. “And because of the rise in green prices last week, we now see the next pump prices this week.”
De Haan said petrol and diesel prices were “declining” as demand continued to exceed service delivery.
“Liquid fuels have turned into liquid gold,” he said in a statement. “Russian oil is increasingly off the market, reducing commodity supply while demand increases before the summer driving season.”