Indiana and Illinois saw some of the highest spikes in gas prices in the country after Russia's invasion of Ukraine drove up gas prices worldwide.
Crude oil prices spiked over $110 a barrel for the first time in a decade, which could lead to a 40-cent to 50-cent jump at the pump, according to AAA. The average price of gas jumped to $3.78 per gallon nationally.
Gas prices rose 14 cents to an average of $3.53 per gallon in Indiana and 14 cents per gallon to an average of $3.85 per gallon in Illinois earlier this week, according to AAA. Gas prices eclipsed $4 per gallon in Illinois on Thursday.
“Russia’s invasion and the responding escalating series of financial sanctions by the U.S. and its allies have given the global oil market the jitters,” said Molly Hart, AAA spokesperson for AAA — The Auto Club Group. “Like the U.S. stock market, the oil market responds poorly to volatility. It’s an explosive situation, and a grim reminder that events on the far side of the globe can have a ripple effect for American consumers.”
Gas prices have risen above $3.80 on average in Lake, Porter, LaPorte, Jasper, Newton and Starke counties as of Friday, according to Gasbuddy.com. Drivers in LaPorte County are paying more than $3.88 per gallon, the highest average in Northwest Indiana.
"Outside of August and September, which are hurricane season months, we've never seen such a large single-day increase outside of those four months," GasBuddy Senior Petroleum Analyst Patrick De Haan said. "The increase was 6.4 cents per gallon... What we're seeing now is 80% Russia, 20% the switch to the summer blend at refineries. The increases we're seeing now are likely to continue."
Gas prices averaged $3.978 per gallon this week in the greater Chicago metropolitan area this week, up from $2.978 per gallon a year ago, according to AAA. About 56% of drivers AAA surveyed said gas prices are now at a level that would affect their driving habits.
“The Russia-Ukraine conflict has intensified what was already a global oil market that was tight on supplies,” Hart said. “Sanctions and regulations have effectively removed Russian oil from the market. Prices accelerated Wednesday, when OPEC and its allies announced that they would not ramp up production beyond the modest increases previously planned.”
© Copyright 2024, nwitimes.com, Munster, IN