Rising gas prices reach a new milestone in North Carolina, with no sign of slowing down
For the first time in 14 years, the average price of a gallon of gas has topped $4 in North Carolina and shows no signs of leveling off.
Russia’s invasion of Ukraine has sent world oil prices soaring, and that’s trickling down to the pump. The cost of crude oil accounts for about 56% of a gallon of regular gas, according to the U.S. Energy Information Administration.
The average price for a gallon of regular in North Carolina was about $4.03 on Tuesday, according to AAA. A gallon of diesel was about $4.85.
“Unfortunately this isn’t the end of seeing prices rise at the pump,” AAA spokeswoman Tiffany Wright said in a statement. “Sanctions and regulations against Russia have limited its ability to sell its oil on the global market, which has intensified global supply concerns in what was already a tight market due to the pandemic.”
Brent crude, one of three oil benchmarks, topped $126 a barrel Tuesday afternoon, up from about $65 a barrel in early December.
Gas prices had already risen more than 30 cents a gallon in the weeks before the invasion. But since Feb. 24, when Russian troops crossed the Ukrainian border, the average cost of a gallon of regular in North Carolina has risen another 55 cents, according to AAA.
Diesel prices have risen even more sharply, up nearly 89 cents a gallon statewide on average since the invasion began.
President Joe Biden’s decision Tuesday to ban the import of Russian energy products will likely result in still higher prices. Last year, the U.S. imported about 672,000 barrels per day of crude oil and refined petroleum products from Russia. Cutting those imports will help deprive the country of billions in revenue and had support across the political spectrum.
Higher pump prices have not yet resulted in lower demand. According to the Energy Information Administration, gasoline demand in the U.S. rose about 1% last week to 8.74 million barrels per day.
North Carolina drivers are paying less than the national average of $4.17 a gallon. Nationwide, prices vary from an average of $3.72 in Oklahoma up to $5.44 in California, according to AAA.
The most drivers have ever paid in North Carolina, not adjusted for inflation, was an average $4.085 per gallon of regular on Sept. 15, 2008. Adjusted for inflation, that would be about $5.33 a gallon today.
This story was originally published March 8, 2022 at 1:27 PM.
