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Gas prices in Chicago broke a new record – more than $ 5 per gallon

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CHICAGO (CBS) – Gas prices in Chicago have risen to a new record: the average gallon of gas now costs drivers more than $ 5.

According to the AAA, the average price per gallon of unleaded gasoline is $ 5.12 as of Tuesday morning in Chicago, up 26 cents last week and more than $ 1.60 last year.

This is the highest recorded average price per gallon of conventional unleaded in Chicago, according to AAA.

A gallon of unleaded premium will cost you $ 5.44, which is 17 cents more than last week and almost $ 2 last year.

The constant rise in gas prices occurs even after The Biden administration initiated plans last week to replenish Strategic oil reservesemergency oil supplies to the U.S., which the country is currently using at a historic pace, to increase oil supplies to the market and lower pump prices.

The energy ministry announced on Thursday that it was launching a buyout process calling for applications to buy 60 million barrels of oil, or one-third of the 180 million emergency barrels issued as salaries to Russian President Vladimir Putin. war with Ukraine. Gas prices were high even before Putin’s war, which caused pump prices to rise even more.

The deadline for applications from companies will be in the fall of 2022 and is designed to strengthen the country’s reserves for future years. Earlier this year, President Biden announced that the United States would produce 1 million barrels per day out of reserve to help lower gas prices.

“The U.S. Strategic Oil Reserve, the world’s largest emergency reserve, is a valuable tool to protect the U.S. economy and consumers from supply disruptions – whether they are caused by home emergencies or oil dictators using access to Energy Resources, “said Energy Minister Jennifer M. Granholm in a statement. providing assistance when most needed. “

In its press release announcing the plan, the Department of Energy noted that they expect oil prices and demand to be much lower, probably after the 2023 fiscal year. It remains unclear how long gas prices will remain higher than the national average of $ 4 per gallon.

The Department of Energy said replenishment plans will also help boost production needed now, to lower prices this year, as oil prices are partly based on future expectations.

The average price in the country on Thursday for a gallon of gas is $ 4.25, according to AAA, compared to $ 4.18 a month ago, despite attempts by the administration to prevent price increases.

https://www.cbsnews.com/chicago/news/chicago-gas-prices-hit-new-record-at-more-than-5-per-gallon/

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