US (Washington Insider Magazine) – Fact Check: Are Gas Prices in the U.S. the Highest They’ve Ever Been?
Concerned about the rising gas prices? Due to the pandemic and the tension on the Ukrainian-Russian border, it feels like fuel rates are higher than ever…
…but are they really higher than ever?
Let’s discuss if this is the highest that gas prices have ever been, and what has contributed to the price peak.
Biden Administration Fuel Prices
Before we take a look behind the curtain to see if we’ve hit an all-time high, we have to look at different factors that have contributed to the gas price hike.
After all, the Biden administration has faced a number of unique challenges — from managing national safety measures during the global pandemic to tackling a tense relationship with Russia amidst its conflict with Ukraine.
Russia invaded Ukraine in February of 2022, in an attempt to overrun the Ukrainian government and regain control of key districts. Gas prices jumped up an alarming amount, which was made more complicated by President Biden’s sanction-only foreign policy strategy.
Notably, when President Biden announced that the administration was cutting gas trade from Russia at the beginning of March, average gas prices were $4.25 per gallon.
According to popular news outlets, this is the highest that U.S. gas prices have historically ever been.
Previously, the record was set in July 2008 — when U.S. gas prices were $4.11 according to the AAA.
But why would a peak like this happen with fail safes and modern technology in place more than ever before?
Prior to the trade sanctions on Russia, the country supplied 8 percent of all imported oil to the U.S. This compounded the current 2022 gas peak.
The effects of Russian sanctions are worsened by the fact that the U.S., like other global leaders affected by trade sanctions in Europe, is striving to be carbon neutral by 2050. Many believe that this underlies the Presidential motive to avoid drilling and limit exports into the U.S., even as the Russian-Ukrainian crisis continues.
The United States Gas Production and its effect on rising gas prices
In 2019, the United States’ total gas production was at an all-time high, producing around 13 million barrels of crude oil per day.
As demand decreased, production was forced to decline due to safety concerns amidst the pandemic We saw a slight dip due to this as well as a price increase as oil production dropped to 9.7 million barrels per day (BPD).
Data suggests that demand has now jumped back up to 11.6 million BPD. However, this is still 1.4 million BPD short of pre-pandemic levels.
Pandemic-influenced declining demand, along with the Russian trade sanctions, are the two primary factors that resulted in the record-breaking U.S. gas prices.
Is gas the highest in California?
In California, gas prices are closer to $8 a gallon. In the San Francisco bay area, gas is $7.25 a gallon, and is almost higher than the living wage.
Elsewhere, a Chevron station in Downtown LA has reported oil to be more than $8 a gallon, way higher than what was seen in the San Francisco and Yosemite regions.
Are gas prices really the highest they’ve ever been in the U.S.?
Yes, gas prices are the highest they’ve ever been historically in the U.S. As unprecedented events continue to play out on the global stage, Americans must be aware that we will need time to recover from inflation and the effects of sanctions.