Gas prices in the soared to their highest level since 2008, as Russia’s invasion of Ukraine disrupted the global energy market.
The average price of a gallon of gas was $4,009 on Sunday, an increase of 57 cents from the previous month.
The highest price ever was in July 2008, when the average price was $4.114 per gallon. (When factoring in inflation, that equates to $5.25 a gallon today in US) Reuters finds
*Reuters tweet on gas prices
— Reuters (@Reuters) March 6, 2022
Russia’s war on Ukraine, which has forced more than a million people to flee,
Has caused extreme volatility in energy markets, in part because Russia supplies 10% of the world’s oil and more than a third of the natural gas consumed in the EU.
Some refineries and traders have stopped buying crude oil from the country, even shipments that are offered at a huge discount.
Refiners, shipping companies, insurers and banks are retreating because they fear getting out of the sanctions by doing business with Russia. Reuters reports
The price of international benchmark Brent crude rose 7 percent to $118 a barrel on Friday. In early December, the barrel cost about $ 65.
Gas prices had already risen during the pandemic, in part due to fluctuations in supply and demand.
*Rising gas prices helps rise inflation, reaching highest level in 40 years in January.