US gas price may increase, things are going to be pricey in the US market
Gas prices in the United States may rise due to growing concerns about Russia’s invasion of Ukraine.
As Americans continue to watch gas prices skyrocket, wondering how much higher they can go, another question has arisen: Could other things cost more as well?
Prior to Russia’s invasion of Ukraine, inflation was already at an all-time high. The Consumer Price Index for all products increased 7.5 percent from January 2021 to January 2022, the largest 12-month increase since February 1982.
Russia is one of the world’s largest oil exporters. It shipped nearly 8 million barrels of oil and other petroleum products to global markets in December, 5 million of which were crude oil.
Only a small portion of that was sent to the United States. In 2021, Europe received 60% of the oil, while China received 20%. However, because oil is priced on global commodity markets, the loss of Russian oil affects oil prices worldwide, regardless of where it is used.
Because of concerns about disrupting global markets, Western nations initially exempted Russian oil and natural gas from the sanctions imposed in response to the invasion.
Despite this exemption, much of Russia’s oil remains unsold on global markets. Traders are hesitant to bid for it because it is unclear whether any deal can be closed given the sanctions imposed on Russia’s banking system. It has also been difficult to find tankers capable of or willing to call on Russian ports.
Food prices
Grocery stores are already feeling the effects of higher gas prices, and food prices are expected to rise further in the coming weeks. Meat and produce have seen the most price fluctuations recently.
Travelling expenses
The price of regular gasoline in the U.S. hit an all-time high on Tuesday at $4.173 per gallon. California had the highest average price per gallon, AAA said. AAA predicts airlines will follow suit as they are more concerned with the cost of crude oil. Some international airlines have already raised fuel surcharges for passengers.
Lawn care services
Business owners who rely on being on the road, such as landscaping companies, are seeing no relief at the pump. According to one Long Island business owner, it is difficult to conduct business without increasing the cost to customers.
Marine industry
According to the boat and marina owners, there is no quick fix. The effects of a fuel-impacted season will be felt from bait shops to seafood markets, as well as potentially putting 100 or so captains and crews out of work just at the dock.
