[Archyde.com]-US gasoline prices exceeded $ 5 a gallon for the first time on the 11th. The rise in fuel costs, which is the main factor pushing up prices, will not stop.
According to the American Automobile Association (AAA), the national average price of regular gasoline rose to $ 5.004 per gallon on the 11th. The day before was $ 4.986.
Soaring gasoline prices are a headache for President Biden and the Democratic Party, who are preparing for the midterm elections in November. The Byden administration is trying to curb prices by doing so, such as releasing strategic stockpiles and requesting OPEC countries to increase production, but sanctions on Russia, which was invaded by Ukraine when demand is recovering. Prices continue to rise due to tight refining capacity.
However, despite the high gasoline price, the use of domestic automobiles is relatively active, and it is only a few percent below the level before Corona.
Inflation-adjusted gasoline prices are regarding 8% below their June 2008 highs ($ 5.41), according to the US Department of Energy.
Still, economists point out that demand might start to decline if the price continues to rise above $ 5.
“$ 5 is a level at which gasoline demand can plummet,” said Reed Lanson, senior economist at Kpler.
