If you’re a frequent or even regular driver, you have probably been tracking gas prices very closely over the last few weeks.
The world’s dependence on Russian oil meant that when the country brazenly invaded Ukraine a month ago, the ensuing sanctions and boycotts from global powers have sent gas prices in numerous countries to highs unseen in years.
How Much For That Gallon Of Gas?
While prices have been trending upwards for years, the true spike came last week when a gallon of gas reached a high of $4.33 across the country.
In response, companies like Uber (UBER) – Get Uber Technologies, Inc. Report, Lyft (LYFT) – Get Lyft, Inc. Class A Report and Instacart added fuel surcharges to offset the rising costs and many people started biting their fingernails a little harder.
According to a recent survey by Autoinsurance.com, 90% of drivers in the U.S., UK and European Union countries were at least “slightly” concerned about the cost of gas while 45% of drivers said they’ve reduced the amount and length of their rides to compensate.
Since then, prices have trended down somewhat — according to AAA numbers, a gallon cost $4.236 on Thursday, $4.237 on Wednesday and $4.289 a week ago.
AAA
Don’t Get Too Excited Yet
This is small consolation given that, a month ago, that prices was at $3.543.
The dramatic spike is even more apparent when you consider that, a year ago, that number was at $2.874. In notoriously expensive California, prices have not dropped at all and were at a high of $5.882 on Thursday.
Some analysts believe that the small drops are an adjustment from the widespread shock over the war in Ukraine and sweeping sanctions. But as shelling continues and the humanitarian crisis worsens, it may be a while prices return to levels seen a month ago — if they ever do.
While the pivot toward electric cars is well underway independent of any geopolitical events, the high price of gas is also pushing some drivers to consider other options in the near term.
Public transit is a more viable option for Europeans, 32% of whom recently took public transit instead of driving to cut the cost of gas.
As 45% of all Americans do not live within range of reliable public transportation, they are more likely to cut spending in other areas — according to a recent report from market analytics firm Jungle Scout, 70% cut down on “fun” and “impulse buys” to make up for those sky-high gas prices.
