The average gas price in America is the highest it's ever been, and it isn't stopping.
The cost of gas in the USA has been getting out of hand at a rapid pace and it looks like Russia's invasion of Ukraine is set to make the situation even worse. According to data sourced from the AAA, as of right now, the average price of regular gas in the USA is sitting at $4.252, nearly double what it was just a year ago, while diesel has also peaked with an average price today of $4.883. As of yesterday, the gas price in the USA reached an all-time high, surpassing even the amounts charged in 2008. The big question for some might be why exactly do Russia's actions affect the local price of gas?
The reason for this is because President Biden has decided to sanction the country which includes putting a stop to the procurement of oil. It is understood that a fraction of our oil is sourced from Russia, but this action of restricting the transaction will come as a severe blow to the country.
Making the announcement was President Biden himself who said, "The United States is targeting the main artery of Russia's economy. We're banning all imports of Russian oil and gas energy. That means Russian oil will no longer be accepted in U.S. ports, and the American people will deal another powerful blow to Putin's war machine."
Biden admits that the decision will hurt citizens of the USA as he adds, "The decision today is not without cost here at home. Putin's war is already hurting Americans at the gas pump. Since Putin began his military buildup on Ukrainian borders, just since then, the price at the gas pump in America went up 75 cents. And with this action, it's going to go up further. I'm going to do everything I can to minimize Putin's price hike here at home."
Biden explains that the decision was made with full support from congress and the country's population as they have both expressed support for Ukraine. He adds that he has also consulted with European countries belonging to NATO who have also executed similar sanctions on Russia.
So, what does this oil sanction mean for the average American citizen? California is the hardest hit; if you're driving a diesel car in the state, you'll now have to spend $5.989 per gallon, while regular gasoline costs $5.573 per gallon. Premium gas costs $5.846 per gallon. In Colorado, you'll still pay a bit less for regular gas but the $3.912 cost per gallon is still tough to swallow.
In light of the recent situation, Elon Musk acknowledged the danger of the USA's reliance on Russian oil imports, claiming that the country needs to start increasing oil outputs so that it doesn't have to rely on a foreign nation. Of course, the logical option would be to trade your gas-guzzling internal combustion-powered vehicle in for a green electric car but consider that the cheapest EV at the moment is the 2022 Nissan Leaf S with prices starting at $27,400 before taxes and incentives.
That's a competitive price but still a notable premium over what you'd pay for a similar-sized Nissan Versa. Toyota has been a strong voice against the rapid transition to full electrification and maintains its stance that hybridization is still a solid stepping stone that can be used for a more fluid evolution. The CEO of Stellantis has also come out to criticize politicians for the pressure they have placed on carmakers to go fully electric faster than what is necessary.