LAS VEGAS (KTNV) — Gas prices continue to soar in response to the Russian war on Ukraine and U.S. sanctions imposed on Russian oil. According to GasBuddy and AAA, as long as the price for crude oil continues to go up, we’re in for the long haul.
Do prices at the pump have you re-evaluating time spent traveling? You’re not alone. According to GasBuddy, the national average for gas hit a new record Monday at $4.104 per gallon. That beats the previous record of $4.103 set in 2008, during the Great Recession and housing crisis. For the first time since then, gas prices reached $4 per gallon on Friday. AAA has the national average at $4.06 per gallon, so not far behind.
"The global consumption is nearly 100 million barrels a day," said Patrick De Haan, head of petroleum analysis for GasBuddy. "The problem is that Russia is a significant producer with 10 million barrels today. Suddenly with the loss of Russian oil, the balance has been significantly tipped in a way that we have never fully seen before."
GasBuddy and AAA have Nevada as the third highest state for most expensive fuel prices. Just this past month, the price for gas has risen from $3.858 per gallon on Feb. 8 to $4.573 on March 6. AAA has a similar analysis.
"We can expect gas prices to stay high. How much higher they’ll go or when we’ll see some sort of relief is still undetermined. But as long as the price for crude oil remains this high, prices are going to be pretty high, at least for the long term," said Aldo Vazquez, AAA external communications manager for Nevada.
Why is the price for crude oil so important?
"Here’s the breakdown for establishing prices: Crude oil makes up about 60% of that. Then you factor in transportation cost, marketing cost, state and local taxes, and sometimes even some environmental quality restrictions," Vazquez said.
Representatives for Sens. Catherine Cortez Masto and Jacky Rosen said the senators are working with Congress and the Biden administration on lowering the cost of gas for Nevadans.