Topline
Average U.S. gas prices topped $5 per gallon Thursday, according to fuel data platform GasBuddy, a grim milestone as gas prices surge past prior records.
High gas prices are displayed at a gas station in Los Angeles last week.
Key Facts
The average cost of a gallon of gas is now $5.005, according to GasBuddy, a two-cent increase from Wednesday’s record-high $4.991 average.
The latest data from American Automobile Association, the other leading gas price tracker, still pegs the average price to be just shy of $5 at $4.970.
Prices are steepest in California, where the average price per gallon is $6.40, according to GasBuddy.
Key Background
Prior to 2022, the highest ever average recorded by AAA was $4.114 per gallon in July 2008. Average U.S. gas prices soared to a record high of $4.33 in March shortly after Russia invaded Ukraine, which caused crude oil prices to surge and threatened global supply. After a two-month lull, gas prices have steadily risen since last month, setting record highs nearly every day. Crude oil benchmark West Texas Intermediate is $121.82 per barrel Thursday, up nearly 6% since last Wednesday when the Saudi-led OPEC+ alliance’s announced oil production increase failed to quell investors’ fears.
Crucial Quote
Patrick De Haan, GasBuddy’s head of petroleum analysis, warned in a statement there’s a “high probability that prices could go even higher in the weeks ahead.” De Haan said the surge is due to “a perfect storm of factors all aligning to create a rare environment of rapid price hikes,” likely referencing historically low inventories globally and uncertainty caused by the war in Ukraine, made worse by unfazed demand.
Big Number
19. That’s how many states have gas prices over $5, according to GasBuddy. The states are: California ($6.40), Illinois ($5.64), Nevada ($5.61), Alaska ($5.52), Washington ($5.51), Oregon ($5.49), Hawaii ($5.48), Arizona ($5.29), Indiana ($5.24), Michigan ($5.22), Ohio ($5.07), Idaho ($5.05), Pennsylvania ($5.05) New Jersey ($5.03), Maine ($5.03), Utah ($5.01), Massachusetts ($5.01), Vermont ($5.01) and Rhode Island ($5.00).
Further Reading
Why Gas Prices Seem To Go Up Faster Than They Go Down (Forbes)
