AAA data showed that the price of gasoline in the United States averaged more than $5 per gallon for the first time on Saturday, extending a boom in fuel costs that is fuelling growing inflation similar to the national average price for normal unleaded petrol jumped to $5.004 per gallon on June 11 from $4.986 the day before.
Fuel prices have been surging around the world due to a combination of rebounding demand, sanctions on oil producer Russia and a squeeze on refining capacity. U.S. road travel, however, has remained relatively strong, just a couple of percentage points below pre-pandemic levels.
Economists expect demand may start to decline if prices remain above $5 a barrel for a sustained period.
Gasoline product supplied, a proxy for demand, was 9.2 million barrels per day last week, broadly in line with five-year seasonal averages.
High prices for drivers come as major oil-and-gas companies post bumper profits.
Shell reported a record quarter in May and Chevron Corp and BP have posted their best numbers in a decade.
This report’s information was first seen on Reuters; to read more, click this link.
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