For trucking fleets—which move 70% of the U.S.’s freight tonnage—the sudden jump in prices is set to hurt smaller operators who have to cover the extra fuel cost on the spot and wait for surcharges to be reimbursed, American Trucking Association Chief Economist Bob Costello said.
The average price for unleaded gas in Indiana’s neighboring state to the north has climbed to nearly $4.25 per gallon, up 62 cents in a week and 88 cents in a month, according to AAA Michigan.
The average price for a gallon of gasoline in the U.S. hit a record $4.17 Tuesday, rising by 10 cents in one day, and up 55 cents since last week, according to auto club AAA.
Oil prices soared early Monday before retreating. Benchmark U.S. crude surged to $130 a barrel overnight, then moderated to around $119, a 3% gain, in afternoon trading. The international price skyrocketed to $139 before falling back to about $123 a barrel.
Markets worldwide have swung wildly recently on worries about how high prices for oil, wheat and other commodities produced in the region will go because of Russia’s invasion, inflaming the world’s already high inflation.
During the first full week of Russia’s invasion of Ukraine, the price of regular gas rose by almost 41 cents, according to the AAA motor club.
Americans are paying nearly a dollar more for a gallon of gas than they did last year as the growing threat of war in Ukraine moved oil prices higher.
The early deliberations come days after a group of vulnerable Senate Democrats introduced a bill that would suspend the gas tax of roughly 18 cents per gallon for the rest of the year.
The Labor Department reported Tuesday that its producer price index—which measures inflation before it hits consumers—rose 0.6% last month from September, pushed higher by surging gasoline prices.
Citizens Energy Group said it would use various measure to keep prices down even though the market price for natural gas is about double the level of last fall.
The national average for a gallon of gas is now almost 5 cents higher than a month ago and 92 cents higher than this time last year. The increases are even higher in Indianapolis.
According to crowdsourced data from the gas-station-finder app GasBuddy, fuel shortages were reported in 14 states as of Thursday afternoon.
From Virginia to Florida and Alabama, fuel stations are reporting that they’ve sold out of gasoline as supplies in the region dwindle and panic buying sets in.
Plastic, paper, sugar, grain and other commodities are all getting more expensive as demand outpaces supply. Companies are also paying more for shipping as fuel costs rise and ports experience longer delays because of congestion.
A deep freeze in the Gulf state region and beyond that killed dozens of people, left millions without power and jeopardized drinking water systems also forced as many as 11 refineries offline, according to travel app GasBuddy.
Demand is weak because so many Americans are under shelter-in-place rules and businesses have been closed because of the coronavirus outbreak.
Should the recovery take weeks or months, the impact could be far-reaching. Higher fuel prices can not only motivate consumers to cut spending elsewhere but also ultimately reach into virtually every corner of the economy.
Indianapolis International Airport has been on a roll in recent years, seeing strong increases in passenger traffic and direct flights. But now jet-fuel prices are on the way up, threatening to slow the airport’s progress.
Indiana is heading into the Memorial Day weekend tied with California for the largest gas price increase in the United States over the past year.
Massive flooding caused by Tropical Storm Harvey along Texas' refinery-rich coast could have long-standing and far-reaching consequences for the state's oil and gas industry and the larger U.S. economy.
