Gas Prices Soar to Highest Price Since 2012

You more than likely have seen gas prices in your area skyrocketing.

In fact, the average national gas pric has surged to $3.83 a gallon, the highest its been since September of 2012 according to data from AAA.

As gas prices explode, they add inflationary concerns across the U.S. economy and experts say there may be little end in sight.

The national average for a gallon of regular gas stood at $3.83 on Friday, the highest since Sept. 21, 2012.

Friday’s average was nearly 11 cents a gallon above Thursday’s. Americans are paying about 27 cents more than last week, and 41 cents more than a month ago.

In California, the state average is now $5.07 per gallon.

So why are gas prices going up? Rising oil prices are behind the spike. West Texas Intermediate crude, the U.S. oil benchmark, topped $116 per barrel Thursday. This was the highest level since 2008.

With Russia invading Ukraine, and sanctions on the country, fears of a shortage supply are mounting.

More than 50% of the cost of gasoline is based on the price of oil, according to the U.S. Energy Information Administration. Costs associated with refining, distribution, marketing, and taxes make up the rest of the price of gasoline.

Some experts say that demand destruction in the form of high prices may be the only thing to quell the surge in crude prices. Wells Fargo says that number is $130 per barrel of oil or $4.60 per gallon of gasoline.

Patrick De Haan, head of petroleum analysis at GasBuddy, predicted the national average could top $4 later this month.

“The fallout from Russia’s oil production or lack thereof is likely to continue impacting us as we head to the peak of summer driving season,” he said Thursday on CNBC’s “The Exchange.”

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.