The Washington Post, New York Times and many other major media organizations are proclaiming we have hit a new record high gas price. AAA set the national average at $4.173 per gallon this week. That price does beat the highest previous record set back in 2008 in absolute terms, but adjusting everything for inflation paints a slightly better picture—though inflated prices are likely here to stay.
Russian Oil Ban
The events impacting today’s gas prices are totally unique to the issues that plagued the market back in 2008. President Biden’s announcement today that the U.S. would halt all imports of Russian fuel is a manufactured and anticipated supply crunch that the market will have much more control over, despite the dramatic immediate impact that has set the new pump price “record. ”
The article from Motor Trend goes more in depth