US gas prices hit record high with impending driving season

U.S. retail gasoline and diesel prices hit a record just ahead of the country’s summer driving season, a challenge for President Joe Biden and the Federal Reserve as they grapple with inflation the fastest in decades.

Average gasoline prices hit $4.374 a gallon, according to the American Automobile Association. Diesel also hit a record high of $5.55. The surge is expected to add to inflationary pressures weighing on the world’s largest economy. The summer driving season in the United States begins in about three weeks.

Oil has surged this year as Russia’s invasion of Ukraine jolted commodity markets, jeopardizing global fuel supplies, just as demand in most economies rebounds from the impact of the pandemic. It’s driving up the prices of everything from fuel to food, despite efforts by the Biden administration to push back, including a giant release of crude from strategic reserves.

A key US inflation release later this week will offer clues to the latest impact of price hikes on the economy.

Fuel consumption is being watched closely, with Americans expected to drive more this summer than in 2021, even as more expensive gasoline limits some trips. Motorists nationwide are expected to use 9.2 million barrels of gasoline a day from April to September, up 0.8% from the same period last year, according to Energy Information’s summer outlook. Administration last month.

This article was provided by Bloomberg News.