RIYADH: Gasoline prices hit $4 per gallon on Sunday, its highest level since 2008, CNBC reported, citing the American Automobile Association.
This is mainly attributed to the global surge in oil prices as a result of Russia’s invasion of Ukraine.
The underlying costs of oil account for over half the cost of gasoline consumers use for their vehicles.
Customers are paying $0.4 more than a week ago — and $0.57 higher compared to a month ago.
An estimated 66 percent of Russian oil is struggling to find buyers because of the new imposed sanctions post the invasion.
“Oil buyers are reducing their purchases of refined products from Russia causing Russian refineries to shut down,” CNBC reported, citing Andy Lipow, president of Lipow Oil Associates.
The national average is projected to reach $4.5 per gallon, he added.
As inflationary concerns ripple through the economy, customers are asking the government to halt the federal gas tax.
