Retail gasoline prices hit all-time record - AAA

Gasoline drips out of a nozzle held by a gas station mechanic in Somerville
Gasoline drips out of a nozzle held by a gas station mechanic in Somerville, Massachusetts, U.S., March 7, 2022. REUTERS/Brian Snyder

March 8 (Reuters) - Retail gasoline prices in the United States surged to an all-time record on Tuesday, and prices are expected to keep rising as the United States moves toward banning Russian oil imports.

The average cost of a retail gallon of gasoline hit $4.173 early Tuesday, according to the American Automobile Association. In some parts of the country prices have surpassed $5 a gallon, delivering a hit to consumers in the world's largest gasoline-consuming nation.

Gasoline costs have been surging in recent weeks in tandem with the price of oil following Russia's invasion of Ukraine.

The United States and allies have imposed heavy sanctions on Russia, which exports 4 million to 5 million barrels of crude daily and 2 million to 3 million barrels of refined products, making it the largest exporter of petroleum in the world.

Rising costs hurt household budgets and leave consumers with less discretionary income, leading some to alter spending habits. read more

The Biden Administration is now considering banning Russian imports outright, which it and other countries have so far not done out of fear of causing energy costs to skyrocket.

The United States averaged 670,000 barrels per day of oil imports from Russia in 2021. Most of that was not crude oil, but unfinished oils and other products.

U.S. drivers were paying an average of $4.17 a gallon for gasoline on March 8 after Russia's invasion of Ukraine sent crude oil prices rocketing higher over the past week. That's a new record, and analysts say prices are only going to keep rising.
Reporting By David Gaffen; Editing by Kirsten Donovan

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