Gas price hikes sees more drivers stranded on side of road
American motorists are driving on empty.
Skyrocketing fuel costs have led to a surge in drivers left stranded on the road as a result of they solely have sufficient money to partially refill their tanks, in line with new information.
The vehicle membership AAA serviced 50,787 out-of-gas calls in April, a 32% improve from the identical month final year, according to the Washington Post.
By distinction, just below 20,000 drivers sought assist from AAA as a result of they had been out of gas in April 2020 — as a lot of the nation introduced lockdown measures in response to the coronavirus pandemic.
Prices on the pump have soared to more than $5 a gallon for normal unleaded in almost half the nation.
So far this year, more than 200,000 motorists nationwide have been stranded on the side of the road, AAA mentioned. During the identical interval final year — when the price of a gallon of fuel was round $3 — simply 154,000 motorists reported operating out of fuel.
A survey by the Washington Post discovered that between April 21 and May 12, 44% of drivers mentioned they’ve solely partially crammed their automobile’s fuel tank.
For motorists who earn lower than $50,000 a year, that determine climbs to 61%.
According to AAA, the common price of a gallon of fuel has jumped 62% in comparison with a year in the past. It now prices a mean of $4.97.
In 18 states, the common price of a gallon of gas has surpassed the $5 threshold.
Rhode Island is the newest state to affix the $5-a-gallon membership, with Connecticut, Delaware, New Hampshire and Maryland on the verge of crossing the identical threshold.
“After a blistering week of gas prices jumping in nearly every town, city, state and area possible, more bad news is on the horizon. It now appears not if, but when, we’ll hit that psychologically critical $5 national average,” GasBuddy analyst Patrick De Haan said in a blog post earlier this week.
“Gasoline inventories continue to decline even with demand softening due to high prices, a culmination of less refining capacity than we had prior to COVID and strong consumption, a situation that doesn’t look to improve drastically anytime soon,” De Haan added.
Last month, an analyst at JPMorgan Chase warned that fuel costs might surpass $6 per gallon by the tip of the summer time.
The world vitality market has struggled to maintain tempo with demand for months as nations reopen from the COVID-19 pandemic. The Russian invasion of Ukraine has additional disrupted shipments and contributed to a current surge in oil costs.
US crude oil was buying and selling at $121.90 a barrel on Thursday whereas Brent crude, the worldwide benchmark, price more than $123 per barrel.