Russia’s invasion of Ukraine has shaken the oil market, which has led to higher gas prices in the US.
In just the last week, gas prices have jumped, with the national average being $3.656. This is almost 30 cents more than a month ago and 90 cents more than a year ago.
Gas Prices Near $4 as Ukraine War Pushes Price Higher
Andrew Gross, a spokesperson for AAA, commented on how the crisis in Ukraine is pushing the cost of gas up.
“Russia’s invasion and the responding escalating series of financial sanctions by the U.S. and its allies have given the global oil market the jitters,” he says. “Like the U.S. stock market, the oil market responds poorly to volatility. 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.”
Businesses Impacted by Rising Gas Prices
Of course, it’s not just consumers feeling the pinch from soaring gas prices. For businesses that rely on gas for operations, increasing costs at the pump can have a damaging impact on cash flow and ultimately profits.
With the cost of gas rising, it is within businesses’ interest to seek out gas stations offering cheaper prices to make vital savings.
Five Most Expensive States for Gas Right Now
- California – Gas price average $4.866
- Hawai’i – $4.605
- Oregon – $4.082
- Nevada – $4.069
- Washington – $4.039
Five Least Expensive States for Gas Right Now
- Mississippi – Gas price average $3.301
- Texas – $3.309
- Oklahoma – $3.312
- Kentucky – $3.352
- Missouri – $3.364
New data from the Energy Information Administration (EIA) shows that total domestic gasoline stocks decreased by 600,000 bbl to 246.5 million bbl last week. Meanwhile, gasoline demand increased slightly from 8.57 million b/d to 8.66 million b/d. The increasing demand for gas coupled with a reduction in total supply, contributes to rising prices at the pump.
Though as the AAA warns, escalating costs in oil prices play the lead role in pushing gas prices up.
As the cost of gas is likely to rise as crude prices continue to climb, it is more important than ever that small businesses stay on top of rising costs and seek out the cheapest places for gas to make vital savings.