National Gas Price Average Reaches Level Not Seen Since July 2008
NATIONAL REPORT — The national average for a gallon of gasoline continues to rise to levels not seen in 14 years, reaching $4.06 on March 7 as the conflict between Russia and Ukraine continues. This is 45 cents more than a week ago, 62 cents more than a month ago and $1.30 more than a year ago, according to AAA.
The national average has not been this high since July 2008.
The nation's top 10 largest weekly increases were in Rhode Island (+58 cents), Nevada (+57 cents), Connecticut (+56 cents), Kentucky (+56 cents), Alabama (+56 cents), West Virginia (+55 cents), Virginia (+55 cents), Massachusetts (+54 cents), New Hampshire (+52 cents) and New Jersey (+52 cents).
The nation's top 10 most expensive markets are California ($5.34 per gallon), Hawaii ($4.69), Nevada ($4.59), Oregon ($4.51), Washington ($4.44), Alaska ($4.39), Illinois ($4.30), Connecticut ($4.28), New York ($4.26) and Pennsylvania ($4.23).
According to experts, gas prices could increase more as the conflict continues. President Joe Biden announced that the United States will ban Russian oil imports.
"Today, I am announcing the United States is targeting the main artery of Russia's economy. We're banning all imports of Russian oil and gas and energy," Biden stated on March 8 from the White House. "That means Russian oil will no longer be acceptable at U.S. ports and the American people will deal another powerful blow to Putin's war machine."
U.S. imports from Russia make up a small slice of the American energy portfolio: roughly 8 percent in 2021, of which only about 3 percent was crude oil, reported CNN.
"The United States economy can fully handle any of the challenges associated with higher oil prices," Jason Furman, a Harvard professor and former top economic advisor to President Barack Obama, told the Associated Press. "But it will bring some challenges. We're going to have higher prices at the pump, and there's no way around it."
What Can Be Done
The International Energy Agency (IEA) announced a coordinated release of crude oil from its 31 member countries' strategic reserves, including the U.S., Germany, Canada, South Korea and Mexico, to help counter the impact of rising crude prices.
IEA said member states committed to releasing a total of 61.7 million barrels from their strategic reserves, the largest coordinated release since the agency was founded in 1974. The United States will account for half of this amount.
In addition, the American Farm Bureau Federation, Growth Energy, National Corn Growers Association, National Farmers Union, National Sorghum Producers and the Renewable Fuels Association sent a letter to the White House explaining that an immediate move to restore year-round sales of E15 can ease the impact of oil market disruptions and surging gas prices caused by Russia's invasion of Ukraine.
"As Russia's harmful actions in Ukraine continue and further sanctions are potentially imposed against Russia, oil prices will likely continue to rise, creating still higher consumer costs and threatening U.S. energy and economic security," the letter read. "Expanding the volume of American-made ethanol in the U.S. fuel supply can help alleviate these issues, as ethanol is currently priced 70 to 80 cents per gallon lower than gasoline. And, by displacing imported petroleum, increased ethanol use will enhance U.S. energy security and independence, while reducing emissions and supporting America's farmers and rural economies."