Gasoline prices hit a new all-time high on May 10, 2022, amid rising inflation and President Biden’s restrictions on oil and gas production.
Based on AAA average gasoline price calculatorthe national average cost of a regular gallon of gasoline hit $4,374 on Tuesday, the highest in history according to AAA.
Prices surge as the European Union moves closer to oil sanctions on Russia amid the Kremlin’s invasion of Ukraine. It also comes amid record inflation, with the consumer price index reaching 8.5% in March.
The White House has blamed Russian President Vladimir Putin for record gasoline prices in the US, even coining the increase “#PutinPriceHike” and vowing that President Biden will do everything he can to protect Americans from the “pain at the pump”. “
Biden last month announced that the Environmental Protection Agency will allow the sale of E15 gasoline, gasoline that uses a 15% ethanol blend, across the country this summer. Biden has also moved to release 1 million barrels of oil per day from the Strategic Petroleum Reserve for the next 6 months. The president is also asking Congress to make companies pay fees for idle oil wells and acres of federal land that aren’t producing, with the goal of incentivizing new production.
Critics say Biden’s energy policies, which restrict drilling on federal land and block completion of the Keystone XL pipeline, have created a “supply problem” in the market. Biden initially announced a moratorium on drilling on federal land, but a federal judge in Louisiana blocked the moratorium after 13 Republican attorneys general sued.
According to Yardeni Research, rising oil costs suggest the average American household will pay almost $2,000 more for gasoline in 2022, according to a March research note.
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“In addition, we estimate that the average household currently spends at least $1,000 [according to a seasonally adjusted annual rate] more on food as a result of rapidly rising grocery prices,” Edward Yardeni, president of the firm, wrote on LinkedIn. .”