Gasoline and diesel prices soar to another record amid rampant inflation

A gas station is seen as the average gasoline price reaches an all-time high of $ 4.37 per gallon (about 3.8 liters) in Virginia, USA on May 10, 2022. Gasoline prices are said to vary according to to the region.

Yasin Ozturk | Anadolu Agency | Getty Images

Retail prices of diesel and gasoline surged to another record Thursday as rampant inflation drives costs up across the economy.

The national average for a regular gallon of gasoline reached $ 4,418 on Thursday, according to AAA. The price is not adjusted for inflation.

Prices had previously hit all-time highs on Tuesday and Wednesday.

Consumers are now paying 32 cents more per gallon than last month, which translates to $ 125 million more per day spent on gas, according to GasBuddy’s Patrick De Haan.

Pump prices are $ 1.41 more per gallon than last year.

The national average surpassed $ 4 per gallon in March in the wake of the Russian invasion of Ukraine, and has remained above that threshold ever since.

California has the highest state average at $ 5,853. In ten counties in the state, average prices are now over $ 6.

Retail diesel prices also hit another record high on Thursday. The national average for a gallon is now $ 5,557, which has risen 53 cents over the past month.

Part of the surge in prices is due to refineries – which process crude oil into products such as gasoline that are used daily – which are already running almost at full capacity.

Refining capacity is lower than pre-pandemic, while demand for petroleum products has rebounded as economies around the world resume operations. Lost goods from Russia further exacerbated an already tight market.

“All of our refinery margin indicators were in double-digit territory in April for the first time, regardless of region and complexity,” the International Energy Agency said Thursday. “The current near-universal shortage of products, low inventories and bottlenecks in refinery capacity have led to short-term inelastic supply, pushing the cracks for almost all products to extraordinarily high levels.”