Empty Your Pockets: Gas Prices Spike Due To The Russia-Ukraine Conflict

In recent months, the gas prices in the United States have skyrocketed. New Jersey’s gas prices in particular have increased. According to AAA, on March 2, 2022, the average gas price in Jersey was $3.68 and on March 7, 2022, it was $4.17. This is only the difference between one week. A year ago New Jersey’s average gas price was $2.84, which is almost a dollar difference in only a year. From February 1st to March 1st the average gas price had already increased by 22 cents.

Liam Quinn, a journalist for North Jersey News wrote, “At one point Thursday, the price for an oil barrel jumped over $100. Brent Crude Oil, the international standard for oil, reached as high as $105 per barrel, more than $40 higher than it was this time last year.” And, gas prices do not look like they are going down anytime soon. “Experts are concerned the conflict between Russia and Ukraine could disrupt energy supplies and continue to bump up gas prices,” according to North Jersey News.

Quinn also wrote, “Russia contributed about 7% of gross petroleum imports to the U.S. With heavy sanctions being levied on Russia, first as a deterrence, then as a punishment for launching military operations in Ukraine, oil prices could continue to go up if that supply is disrupted.” Gas prices already rise yearly due to inflation. If they continue to trend upward there may be a critical issue in the hands of United States residents. 

The United States is not the only country facing these issues. According to the Washington Post, “An analysis last week from Barclays, the British bank, noted that Europe would struggle to quickly substitute large quantities of Russian oil and gas with alternative energy sources.” Europe gets nearly 40 percent of its natural gas from Russia. This is creating a major setback because countries in  Europe have to find a new way to get the oil Russia would be supplying them with.

In recent years the gas price increase has been worse than ever. “Gasoline has been a substantial driver of rising prices in the United States, accounting for about a quarter of the 6.1 percent increase in inflation during the past 12 months,” stated the Washington Post. 

Gasoline is not the only thing that will be affected by the Russian invasion of Ukraine. According to the Washington Post, “If energy prices do rise from the conflict, American consumers could see the most harmful effects indirectly — at the grocery store or online, rather than at service stations. That’s because rising gasoline prices probably also mean rising diesel prices, the fuel used most often for cargo transportation.”