That's the highest recorded average price of regular gasoline in U.S. history. The all-time high for average gasoline prices was previously set on July 17, 2008, at $4.10 per gallon.
The news comes as the U.S. announced a ban on Russian oil imports for its invasion of Ukraine.
The average price rose by 10 cents per gallon in one day, and it’s up 55 cents since last week. Stocks fell in the U.S. even with summer on the horizon and the demand for gas rising. While these are contributing factors to prices at the pump, it's evident skyrocketing oil prices are playing an increasingly bigger role.
The price of benchmark U.S. crude jumped 8% Tuesday to more than $129 per barrel. AAA said Americans can expect this trend to continue for as long as crude prices climb.
As Russia has intensified its war on Ukraine, President Joe Biden said the U.S. "will not be part of subsidizing Putin’s war" and banned Russian fuel imports. Critics have said this would be the best — perhaps only — way to force Moscow to pull back.
Biden called the new action a “powerful blow” to Russia and warned Americans will see rising prices, saying, “Defending freedom is going to cost.”
The U.S. only imports about 5% of Russia's crude oil exports, roughly 100,000 barrels a day, according to Rystad Energy. Last year, roughly 8 percent of U.S. imports of oil and petroleum products came from Russia, The Associated Press reports.
Any curbs on Russian oil have the potential to send already high oil and gasoline prices even higher. Both the U.S. and Europe could feel the squeeze on consumers, businesses, financial markets, and the global economy. Analysts have warned crude oil prices could reach $160 to $200 a barrel if Western sanctions are imposed or if buyers keep shunning Russian crude.
Oil prices that high could send an average gallon of U.S. gasoline past $5.
by KATIE CAVINESS | The National Desk