The average price of gas in San Francisco reached more than $5 per gallon this week — that’s a new high record in it’s history.
Gas stations in some U.S. cities already charge more than $5 a gallon, but this is the first time it has reached more than $5 nationwide, GasBuddy’s Patrick De Haan, tweeted on Thursday.
AAA reports that the average price of a gallon of gas is $5.05 in San Francisco. According to AAA, the Los Angeles region is also experiencing gasoline prices above $5 per gallon, similar to other California cities like Napa, San Luis Obispo, San Rafael, and Santa Rosa.
Gas prices in the U.S. are currently hovering around $3.73 per gallon according to AAA data, an increase of almost 20 cents in one week and roughly $1 higher than this time last year. AAA noted Thursday that the most price increases over the past week were recorded in Michigan, with a 39-cent increase in average gas prices, and Indiana, with a 36-cent increase.
According to Nasdaq, due to persistent inflation, supply chain issues, and heightened demand, gasoline prices have been rising for months, but the war in Ukraine is adding to the pressure. The United States and other countries have imposed sanctions against Russia that have caused the oil market to be disrupted and prices to rise up to $110 per barrel as Russia is a major oil exporter. The price of gas is closely correlated with crude oil, meaning that any increases in that market are passed down to consumers.
Although President Biden has repeatedly claimed that his administration is taking steps to reduce gasoline prices. Meanwhile, experts disagree that there is much he can do.
“Like the U.S. stock market, the oil market responds poorly to volatility,” AAA spokesperson Andrew Gross stated.
“It’s an explosive situation, and a grim reminder that events on the far side of the globe can have a ripple effect for American consumers.”
There are still supply chain and inflationary pressures, not to mention that the price of gasoline tends to rise in the summer months as well.
Considering all that, it’s safe to say that California won’t be the only state to have ‘$5 gas’ soon.