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Soaring Gasoline Prices on Drivers’ Minds

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Soaring gasoline prices on drivers’ minds

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Gasoline prices have remained near recent record high of $4.33 per gallon, logging in at $4.23 per gallon this Thursday.  By way of comparison the 2021 average gasoline price was $2.87 per gallon for regular gasoline.  

The state with the highest prices has been California where average prices are over $6 per gallon in several counties with Mono county having the state’s highest prices at  $6.63 per gallon.  Gasoline demand is slightly down, out-of-step with prior seasonal trends.

“Usually this time of year, with warmer weather and longer days, we’d see an uptick in gasoline demand as more people hit the road,” said Andrew Gross, AAA spokesperson. “But we had a slight drop in demand last week, which may be due to higher pump prices.”

Analysts fear prices may rise higher as further sanctions could be undertaken against the world’s second largest oil exporter, Russia. Changing habits due to price inflation could be a preliminary indicator of energy prices depressing economic activity

“In our new survey of drivers, 59% said they would change their driving habits or lifestyle if the cost of gas hit $4 per gallon,” added Gross. “And if gas were to reach $5, which it has in the Western part of the country, three-quarters said they would need to adjust their lifestyle to offset the pump price.”

Tags: gasoline pricesinflation

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