Gas prices are getting higher and higher
Gas prices have set a new record high for the second straight day. AAA said the average price nationally for a gallon of regular gas is now $4.40. That is $1.42 more than this time last year.
Prices are even more expensive locally. The average price in New York has climbed to $4.59.
What is fueling the latest spike in gas prices? With an embargo on Russian oil, it affects the market. Russia is a major supplier of oil, here in the U.S. and across the globe.
Kajal Lahiri, an economics professor with the University of Albany said as the war continues in Ukraine. The problem is: that the demand for gas is high, and the supply is short. Lahiri said a lot is being done to cool down the oil market. He says only so much can be done, a market is going to take its shape no matter what.
A short-term solution was the Biden administration tapping into the U.S. oil reserve a few weeks ago, in hopes to push down gas prices. However, that can only happen for so long.
"It’s a drop in the bucket, though, that oil. It has some effect. You see that. But the market adjusts," said Lahiri "People line up and fill up their tanks, so demand increases."
As we head into spring and summer, people are going to be driving more. That also affects gas prices.
The question everyone wants to know is when it is going to hit below the $4 mark?
"This is a really difficult question because this is highly unpredictable. The gasoline market is highly volatile. You just don’t know," said Lahiri.