Beautiful Virgin Islands

Wednesday, Sep 17, 2025

$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
Hong Kong Industry Group Calls for HK$20 Billion Support Fund to Ease Property Market Stress
Joe Biden’s Post-Presidency Speaking Fees Face Weak Demand amid Corporate Reluctance
Charlie Kirk's murder will break the left's hateful cancel tactics
Kash Patel erupts at ‘buffoon’ Sen. Adam Schiff over Russiagate: ‘You are the biggest fraud’
Homeland Security says Emmy speech ‘fanning the flames of hatred’ after Einbinder’s ‘F— ICE’ remark
Charlie Kirk’s Alleged Assassin Tyler Robinson Faces Death Penalty as Charges Formally Announced
Actor, director, environmentalist Robert Redford dies at 89
The conservative right spreads westward: a huge achievement for 'Alternative for Germany' in local elections
JD Vance Says There Is “No Unity” with Those Who Celebrate Charlie Kirk’s Killing, and he is right!
Trump sues the 'New York Times' for an astronomical sum of 15 billion dollars
Florida Hospital Welcomes Its Largest-Ever Baby: Annan, Nearly Fourteen Pounds at Birth
U.S. and Britain Poised to Finalize Over $10 Billion in High-Tech, Nuclear and Defense Deals During Trump State Visit
China Finds Nvidia Violated Antitrust Laws in Mellanox Deal, Deepens Trade Tensions with US
US Air Force Begins Modifications on Qatar-Donated Jet Amid Plans to Use It as Air Force One
Pope Leo Warns of Societal Crisis Over Mega-CEO Pay, Citing Tesla’s Proposed Trillion-Dollar Package
Poland Green-Lights NATO Deployment in Response to Major Russian Drone Incursion
Elon Musk Retakes Lead as World’s Richest After Brief Ellison Surge
U.S. and China Agree on Framework to Shift TikTok to American Ownership
London Daily Podcast: London Massive Pro Democracy Rally, Musk Support, UK Economic Data and Premier League Results Mark Eventful Weekend
This Week in AI: Meta’s Superintelligence Push, xAI’s Ten Billion-Dollar Raise, Genesis AI’s Robotics Ambitions, Microsoft Restructuring, Amazon’s Million-Robot Milestone, and Google’s AlphaGenome Update
Le Pen Tightens the Pressure on Macron as France Edges Toward Political Breakdown
Musk calls for new UK government at huge pro-democracy rally in London, but Britons have been brainwashed to obey instead of fighting for their human rights
Elon Musk responds to post calling for the murder of Erika Kirk, widow of Charlie Kirk: 'Either we fight back or they will kill us'
Czech Republic signs €1.34 billion contract for Leopard 2A8 main battle tanks with delivery from 2028
USA: Office Depot Employees Refused to Print Poster in Memory of Charlie Kirk – and Were Fired
Proposed U.S. Bill Would Allow Civil Suits Against Judges Who Release Repeat Violent Offenders
Penske Media Sues Google Over “AI Overviews,” Claiming It Uses Journalism Without Consent and Destroys Traffic
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
French Debt Downgrade Piles Pressure on Macron’s New Prime Minister
US and UK Near Tech, Nuclear and Whisky Deals Ahead of Trump Trip
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
Anesthesiologist Left Operation Mid-Surgery to Have Sex with Nurse
Tens of Thousands of Young Chinese Get Up Every Morning and Go to Work Where They Do Nothing
The New Life of Novak Djokovic
The German Owner of Politico Mathias Döpfner Eyes Further U.S. Media Expansion After Axel Springer Restructuring
Suspect Arrested: Utah Man in Custody for Charlie Kirk’s Fatal Shooting
In a politically motivated trial: Bolsonaro Sentenced to 27 Years for Plotting Coup After 2022 Defeat
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Turkish authorities seize leading broadcaster amid fraud and tax investigation
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
ChatGPT CEO signals policy to alert authorities over suicidal youth after teen’s death
The British legal mafia hit back: Banksy mural of judge beating protester is scrubbed from London court
Surpassing Musk: Larry Ellison becomes the richest man in the world
Embarrassment for Starmer: He fired the ambassador photographed on Epstein’s 'pedophile island'
Manhunt after 'skilled sniper' shot Charlie Kirk. Footage: Suspect running on rooftop during panic
Effective Protest Results: Nepal’s Prime Minister Resigns as Youth-Led Unrest Shakes the Nation
Qatari prime minister says Netanyahu ‘killed any hope’ for Israeli hostages
King Charles and Prince Harry Share First In-Person Moment in 19 Months
×