Today’s Highest Gas Prices by State – Forbes Advisor
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The current average US gasoline price is $3.89 per gallon, down $0.01 from yesterday.
The drop in gas prices, while slight, is a welcome respite for Americans struggling with exorbitant prices at the pumps. An increase in demand for gasoline after the Covid lockdowns, coupled with reduced supply, has forced prices higher. Western sanctions on Russian gas imports due to the war in Ukraine have exacerbated the problem.
Although gasoline prices are falling, they remain high. The average price of a gallon of gasoline a year ago today was $3.16.
Which state has the highest gas prices?
In Hawaii and California, you’ll pay an average of $5.32 per gallon for regular gasoline.
Which state has the lowest gas prices?
Arkansas has the lowest gasoline prices, averaging $3.40 per gallon for regular gasoline.
Why are gas prices so high?
Oil is a traditionally volatile commodity since it is traded on futures contracts and not on current prices. But strong demand for crude oil and a limited supply have pushed gas prices to record highs this year, and the geopolitical situation has exacerbated it.
At the start of the Covid-19 pandemic, demand for petrol plummeted as stay-at-home orders kept people off the road. Oil producers responded to falling demand by cutting production, but once the lockdowns were lifted there was a massive surge in demand and not enough oil to keep up with it.
There were also a host of pipeline problems last year that contributed to a delay in oil production, including a cyberattack on the Colonial Pipeline that shut it down for six days, as well as a spill on another pipeline later in the year.
The war in Ukraine has exacerbated these supply and demand problems. Russia, which produces around 10% of the world’s oil supply, is heavily sanctioned by Western countries; in particular, the United States completely banned imports of Russian oil. Cutting off part of the global oil supply chain means that a relatively large part of the supply has now disappeared and countries are struggling to find alternatives.
In an effort to boost supply, President Joe Biden authorized the largest release of oil from global reserves in history. An analysis from the Treasury Department estimates that the releases, both at home and abroad, have reduced gasoline prices by up to 40 cents per gallon.
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