(Washington) Gasoline prices at the pump in the United States hit a new high on Tuesday as President Joe Biden wants to make the fight against inflation “his biggest national priority”.
Posted at 12:28 p.m.
On Tuesday, the average price of a gallon of gasoline (3.78 liters) was $4,374, according to the AAA Automobile Association. It exceeds the previous record of March 11, shortly after the Russian invasion of Ukraine and the start of sanctions, where it stood at 4.33 dollars.
The average price of a gallon of gasoline a year ago was $2,967 (+47%).
Americans are used to less taxed and cheaper gasoline than in Europe. The price per gallon corresponds to 1.10 euros per liter against almost 2 euros per liter of super in France.
“Gasoline and diesel prices both hit record highs this morning,” unadjusted for inflation, said Andy Lipow of Lipow Oil Associates.
The cost of gasoline at the pump follows the rise in the price of crude oil as the world seeks to find an alternative supply to Russian oil.
Andy Lipow of Lipow Oil Associates
Crude prices, which were already on the upswing with the recovery from the COVID-19 outbreak against an inflationary backdrop, surged after Moscow’s invasion of Ukraine in late February and the imposition of sanctions.
Andrew Gross, spokesperson for the AAA, thus recalled “the share of the cost of oil representing more than half of the price at the pump, more expensive oil means more expensive gasoline”. The price of black gold is hovering above $100 these days.
These record prices displease Americans, because they are added to a general price increase (8.5% over one year in March) which pushes the Biden administration to reassure on inflation.
“Americans have never seen gasoline prices so high, and we’ve never seen such a rapid rate of increase,” said Patrick DeHaan, head of oil analysis at GasBuddy, a specialized site. “The situation is dire and is not going to improve anytime soon,” he added.
Joe Biden told Americans on Tuesday that his administration was doing everything it could to bring prices down without slowing economic activity.
For energy costs, he recalled the deployment of one million barrels per day from strategic reserves. But the White House has yet to choose the option of waiving the 18-cent-per-gallon federal tax to ease pump prices.
“That would be the quickest way to provide the consumer with price relief. Because other than that, there are very few options the administration can take to immediately inflate oil supply and moderate prices,” Lipow said.
He estimates that these prices at the pump will go up another 10 cents per gallon in the coming days.
Especially as the United States enters the summer travel season. “We expect very good demand as Americans hit the road after being stuck at home for most of the past two years,” said Andy Lipow.