US gasoline prices surge to highest since 2008 due to Russia conflict

U.S. gasoline prices at the pump jumped 11% over the past week to the highest since late July 2008 as global sanctions cripple Russia’s ability to export crude oil after its invasion of Ukraine, automobile club AAA said on Sunday.

AAA said average U.S. regular grade gasoline prices hit $4.009 per gallon on Sunday, up 11% from $3.604 a week ago and up 45% from $2.760 a year ago.

The automobile club, which has data going back to 2000, said U.S. retail gasoline prices hit a record $4.114 a gallon on July 17, 2008, which was around the same time U.S. crude futures soared to a record $147.27 a barrel.

The most expensive gas in the country is in California at $5.288 a gallon, followed by Hawaii ($4.695), Nevada ($4.526) and Oregon ($4.466), according to AAA.

Models of oil barrels and a pump jack are displayed in front of a rising stock graph and “$100” in this illustration taken February 24, 2022. REUTERS/Dado Ruvic/Illustration

U.S. gasoline futures, meanwhile, soared to a record $3.890 per gallon on Sunday.

Gasoline price provider GasBuddy said the average price of U.S. gasoline spiked nearly 41 cents per gallon, topping $4 for the first time in almost 14 years, and stands just 10 cents below the all-time record of $4.103 per gallon.

GasBuddy said that weekly increase was the second largest ever, following a jump of 49 cents per gallon during the week of Sept. 3, 2005, after Hurricane Katrina tore through the U.S. Gulf Coast.

“Increasing oil prices continue to play a leading role in pushing prices higher,” AAA said in a release, noting “pump prices will likely continue to rise as crude prices continue to climb.”

U.S. crude futures soared more than 12% to $130.50 per barrel late Sunday, their highest since July 2008, as the United States and its European allies consider banning imports of Russian oil.

(Reporting by Scott DiSavino; Editing by Bill Berkrot and Kenneth Maxwell)