- The average gallon of gas in the US hit a fresh record of $4.622 on Tuesday, up 52% from a year ago.
- Now, there are seven states with an average of $5 or more for a gallon of gas, and many others hovering just below $5.
- There is little sign of relief ahead as crude price jumped on the EU's Russian oil ban and China's move to ease COVID lockdowns.
US gas prices hit fresh nominal records on Tuesday as the average gallon hit $4.622, up roughly 52% from a year ago, AAA data shows.
In addition, more states are seeing gas prices surge past $5 per gallon. Illinois has joined California, Oregon, Nevada, Alaska, Hawaii, and Washington with prices above that mark.
And Arizona plus 10 states in the Northeast, including New York and Connecticut, are within a few cents of $5 per gallon, AAA data shows.
Meanwhile, there is little sign of relief ahead. Crude price jumped Tuesday on the European Union's agreement to ban most Russian crude imports as well as China's move to ease COVID lockdowns. And refineries continue to run nearly full tilt producing more fuel with little spare capacity remaining.
With Memorial Day marking the start of summer driving season, some signs point to subdued demand due to the high prices. Last week, demand on a four-week rolling basis was its lowest for this time of year since 2013, excluding 2020, according to EIA data compiled by Bloomberg.
The AAA had previously forecasted a driving season that approached pre-COVID levels, but the dip in demand has dashed some of those hopes.
A JPMorgan note on May 18 had predicted the average gallon of gas in the US could rise above $6, matching the bar some places in California and other states are already seeing.
As prices continue to hit record after record, it is unlikely that President Biden's administration will be able to lower them, an oil analyst told Insider previously.
"There are very few tools the US administration has because the biggest drivers for gasoline prices are driven by global fundamentals," Matt Smith, lead oil analyst at Kpler said. "You can make decisions on domestic supply, but if it doesn't have an impact on the global picture, it won't have an impact at the pump."
"They already used their biggest bullet [with the strategic petroleum release]," Smith added. "That was probably the best shot of keeping prices down."