Gas prices hit a new all-time high on May 10, 2022, amid rising inflation and President Biden’s restrictions on oil and gas production.
According to the AAA average gas price calculatorthe national average cost of a regular gallon of gasoline hit $4.374 on Tuesday, the highest on record according to AAA.
The awards come as the European Union moves towards oil sanctions against Russia amid the Kremlin’s invasion of Ukraine. It also comes against a backdrop of record inflation, with the consumer price index reaching 8.5% in March.
The White House has blamed Russian President Vladimir Putin for record US gasoline prices, even calling the spike a “#PutinPriceHike” and promising that President Biden will do whatever he can to protect Americans from “the pain at the pump”. “
Biden last month announced that the Environmental Protection Agency will allow the sale of E15 gasoline — gasoline that uses a 15% blend of ethanol — nationwide this summer. Biden also decided to release 1 million barrels of oil per day from the Strategic Petroleum Reserve for the next 6 months. The president is also asking Congress to make companies pay royalties on unused oil wells and non-producing acres of federal land, in an effort to encourage new production.
Critics say Biden’s energy policies – restricting drilling on federal lands and blocking the completion of the Keystone XL pipeline – have created a “supply problem” in the market. Biden initially announced a moratorium on drilling on federal lands, but a federal judge in Louisiana blocked the moratorium after 13 Republican attorneys general sued.
Rising oil costs suggest the average U.S. household will pay almost $2,000 more for gasoline in 2022, according to Yardeni Research, according to a March Research Note.
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“Additionally, we estimate that the average household currently spends at least $1,000 [according to a seasonally adjusted annual rate] more on food due to rapidly rising grocery prices,” Edward Yardeni, the company’s president, wrote on LinkedIn. “That’s $3,000 less money households have to spend on food. ‘other consumer goods and services, which are also experiencing rapid price increases.’