Beautiful Virgin Islands

Sunday, Feb 22, 2026

$5 gas could become widespread as prices hit another record

$5 gas could become widespread as prices hit another record

Prices at the pump continue to shatter records ahead of Memorial Day weekend.

The national average for regular gas hit a fresh record of $4.48 a gallon Monday, according to AAA. That marks an increase of 15 cents in the past week and 40 cents in a month.

Gas prices are now up by 27% from the day before Russia invaded Ukraine.

"Everything is pointing toward even higher prices. We are well on our way toward $5," Andy Lipow, president of Lipow Oil Associates, told CNN Monday.

Citing a surge in gasoline futures, Lipow is raising his gasoline forecast from $4.50 to $4.75 a gallon, suggesting drivers on Memorial Day weekend may be greeted by record-high prices.

Lipow said $5 is "possible," though he conceded the outlook could change considerably if there is a surprise development in the war in Ukraine or with Covid.

According to AAA, the average is already above $5 a gallon in four states: California, Washington, Nevada and Hawaii. Oregon is just a penny away.

Gas spike is making inflation worse


It's important to note that gas prices are not at record highs after adjusting for inflation. The inflation-adjusted record was set in June 2008 when they averaged $5.38 a gallon, according to the US Energy Information Administration.

Still, the latest jump in gas prices threatens to worsen inflation headaches facing families and the US economy broadly.

The problem is that supply still can't keep up with demand, especially for gasoline, diesel and other petroleum products. Gasoline futures jumped to fresh record highs on Monday.

The good news, according to Lipow, is that gasoline production should ramp up in the coming weeks as US refineries end maintenance season.

The bad news is that oil prices remain high.

Oil prices pushed further into triple-digit territory on Monday, raising the specter of even higher gas prices in the days ahead.

US oil jumped 3.4% to $114.20 a barrel -- the highest close since March 23. Brent crude, the world benchmark, gained about 3% to $114.50 a barrel in recent trading.

Demand for energy continues to ramp up as the world recovers from Covid-19. Despite China's Covid lockdowns, oil demand in March stood at 101% of 2019 levels, according to the International Energy Forum, citing newly released data from the Joint Organizations Data Initiative (JODI).

However, supply continues to lag, with production standing at just 97% of 2019 levels.

"The Covid situation in Shanghai is loosening up a bit. Demand might be trickling back," said Robert Yawger, vice president of energy futures at Mizuho Securities. "If there is a breakthrough, that may unleash crude oil."

Up until the past few days, oil prices have not climbed nearly as much as retail prices for gasoline and diesel, both of which are at or near record highs.

Supply of petroleum products like gasoline have struggled to keep up with demand, in part because of a limited amount of firepower from refineries following refinery shutdowns in recent years.

"No one can crank up the refinery because they don't have any spare capacity," said Yawger.

Over the past two years, the United States has lost about 5.5% of its refinery capacity, according to the US Energy Information Administration.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Metropolitan Police Deploys Palantir-Powered AI to Flag Potential Officer Misconduct
UK Parliament Rebukes Police Over Ban on Israeli Football Fans
Britain Emerges Among a Small Group of Nations Without a Religious Majority
UK’s Manufacturing Base at Risk as Soaring Energy Costs Weigh on Industry
Matt Goodwin’s Unconventional Campaign for Reform UK in the Gorton and Denton By-Election
US Military Movements in the UK Spark Speculation Over Preparations Related to Iran Tensions
UK Faces Significant Economic Risk From Trump’s New Global Tariff Regime
UK Defence Secretary Signals Intent to Deploy British Troops to Ukraine
UK Students Mark Lunar New Year as Universities Adjust to New Equality Compliance Rules
UK Government Weighs Removing Prince Andrew from Line of Succession After Arrest
Prince Andrew’s Arrest in UK Rekindles Scrutiny Over US Handling of Epstein Records
Trump’s Strategic Warning to UK Over Chagos Islands Deal Sparks Diplomatic Whiplash
Starmer Government Postpones Local Elections Affecting 4.5 Million Voters
UK Economy Remains Fragile Despite Recent Upturn in Headline Indicators
UK Businesses Face Fresh Uncertainty Following US Tariff Ruling
Reform UK’s Senior Figures Face Scrutiny Over Remarks on Women and Family Policy
UK Electric Vehicle Drive Threatened by Shortage of 44,000 Qualified Technicians
University of Kentucky Trustees Advance Academic Reforms and Approve Coliseum Plaza Purchase
Boris Johnson Calls for Immediate Deployment of UK Troops to Support Ukraine
OpenAI CEO Sam Altman praises the rapid progress of Chinese tech companies.
North Korea's capital experiences a significant construction boom with the development of a new city district dubbed 'Pyonghattan'.
New electric vehicle charging service eliminates waiting times
Vox Populi confronts Justin Trudeau at Davos over vaccination policies
Poland's President Karol Nawrocki ENDS support for Ukrainian citizens:
The mayor of Rotherham in Britain
UK Confirms Preferential U.S. Trading Terms Will Continue After Supreme Court Tariff Ruling
U.S. and U.K. to Hold Talks on Diego Garcia as Iran Objects to Potential Military Use
UK Officials Weigh Possible Changes to Prince Andrew’s Position in Line of Succession Amid Ongoing Scrutiny
British Police Probe Epstein’s UK Airport Links and Expand High-Profile Inquiries
Early 2026 Data Suggests Tentative Recovery for UK Businesses and Households
UK Introduces Digital-First Passport Rules for Dual Citizens in Border Control Overhaul
Unable to Access Live Financial Data for January UK Surplus Report
UK ‘Working Closely with US’ to Assess Impact of Supreme Court Tariff Ruling
Trump Criticises UK Decision to Restrict Use of Bases in Potential Iran Strike Scenario
UK Foreign Secretary and U.S. State Chief Hold Strategic Talks as Tensions Rise Over Joint Air Base
King Charles III Opens London Fashion Week as Royal Family Faces Fresh Scrutiny
Trump’s Evolving Stance on UK Chagos Islands Deal Draws Renewed Scrutiny
House Democrat Says Former UK Ambassador Unable to Testify in Congressional Epstein Inquiry
No Record of Prince Andrew Arrest in UK as Claims Circulate Online
UK Has Not Granted US Approval to Launch Iran Strikes from RAF Bases, Government Confirms
UK Intensifies Efforts to Secure Saudi Investment in Next-Generation Fighter Jet Programme
Former Student Files Civil Claim Against UK Authorities After Rape Charges Against Peers Are Dropped
Archer Aviation Chooses Bristol for New UK Engineering Hub to Drive Electric Air Taxi Expansion
UK Sees Surge in Medical Device Testing as Government Pushes Global Competitiveness
UK Competition Watchdog Flags Concerns Over Proposed Getty Images–Shutterstock Merger
Trump Reasserts Opposition to UK Chagos Islands Proposal, Urges Stronger Strategic Alignment
Greek Prime Minister Kyriakos Mitsotakis advocates for a ban on minors using social media.
Liberal Senator Michaelia Cash Accuses Prime Minister of Lying to Australians
Meanwhile in Time Square, NYC One of the most famous landmarks
Jensen Huang just told the story of how Elon Musk became NVIDIA’s very first customer for their powerful AI supercomputer
×