KING OF PRUSSIA, Pa. (KYW Newsradio) — Gas prices already driven high by inflation are soaring further still, because of Russia's invasion of Ukraine. Drivers are seeing record highs at the pump now, in New Jersey and Pennsylvania.
The average price per gallon in the Philly area right now is $4.30, according to AAA. More broadly in Pennsylvania, it is $4.23, and in New Jersey, it is $4.17. All of those are up from Sunday — a penny in Pennsylvania, and eight cents in Philadelphia and New Jersey.
Of course, those are just average prices. It is not hard to find a station charging well above the average, like the $4.45 at a gas station in King of Prussia. Analysts like Patrick De Haan, of Gas Buddy, say the severe sanctions in Russia are playing a huge role in the rise of gas prices all around the world.
Secretary of State Blinken said over the weekend, the U.S. and its allies are in very active discussion about banning the import of Russian oil and natural gas. That would be a reversal from what the White House was saying just last week.
Dr. Shawkat Hammoudeh with Drexel’s Lebow College of Business says there would be a significant domino effect, costing drivers a lot, if many countries besides the U.S. also take part in a ban.
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“The United States only imports about 3% of its total imports from Russia, but since the oil market is a global market, what happens in one area affects the whole world.”
Hammoudeh says he thinks the breaking point for a lot of people is within reach.
“If the prices go to $5, then that will be something that people cannot take,” he said.
Related audio: Tips for saving money at the pump during these current high gas prices.
And if Russian crude imports and Russian natural gas are banned, it would bring on catastrophe.
No such bans are in place right now, but many companies are already acting by not buying Russian oil. The backlash against Russia comes on top of skyrocketing demand for oil as the U.S. continues to recover from the worst of the pandemic.
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