U.S. Gas Prices Jump Again, Set Record Ahead of Russian Oil Ban

The average gas price in the U.S. hit a record high amid a spike in prices caused by Russia's invasion of Ukraine.

The national average was $4.17 per gallon as of Tuesday morning, according to AAA. The previous record was $4.10, set in 2008 just before the recession and housing crisis, GasBuddy reported.

The spike comes as various Western countries weigh sanctions on Russian oil, which would likely cause even higher gas prices. On Monday, a Russian official warned that a Russian energy export ban could cause a spike to $300 or more per barrel of oil.

The average price of a gallon of gas also has seen its highest seven-day spike, according to GasBuddy. Data from AAA shows the price is up by more than 55 cents since last week, surpassing the previous record increase of 49 cents in a week in 2005, after Hurricane Katrina devastated New Orleans and nearby areas.

The price of diesel fuel is also close to surpassing a 2008 record of $4.84, currently sitting at $4.75, according to AAA. On Friday, diesel prices also broke the record for highest increase in a single day, increasing by 22.2 cents, GasBuddy added.

Patrick De Haan, head of petroleum analysis at GasBuddy, said the combination of high prices and a "fast and furious" rate of price increase has made the situation all the more "remarkable and intense."

"It's a dire situation and won't improve any time soon," he said. "The high prices are likely to stick around for not days or weeks, like they did in 2008, but months. GasBuddy now expects the yearly national average to rise to its highest ever recorded."

Russia is one of the world's leading oil producers, making enough to meet 10 percent of the world's demand. Last week, oil prices surpassed $100 a barrel.

An energy strategist said last month that the U.S. could see gas prices as high as $5 a gallon once oil prices went into the triple digits. GasBuddy reported that this is already a reality in San Francisco, which became the first major U.S. city to reach an average gas price of $5 a gallon on Thursday.

In GasBuddy's release De Haan warned that San Francisco will likely not be the only major city to reach the milestone.

"While Bay Area prices might be leading the way for now, there's a possibility here for the entire state of California to follow suit, with gas prices potentially rising over the $5 mark this spring," he said.

Update 3/7/22, 12:16 p.m. ET: This story was updated with additional information.

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Gas prices spiked to an all-time high in the U.S. on Tuesday. Stock Image/Getty Images