With the continuing fighting in Ukraine, the high gas prices you’re seeing — many are around $4 a gallon this weekend in Jacksonville — could keep going up.
Some are panicking that oil prices could continue to spike and we start seeing prices closer to what you can find in California right now, which is at an average of $5.29 a gallon for regular gas.
This as the President of the European Commission, Ursula Von Der Leyen, spoke out that they’re working to isolate Russia and cut off its oil exports.
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URSULA VON DER LEYEN/EUROPEAN COMMISSION PRESIDENT
“We have imposed severe economic and financial sanctions on the Russian leadership and economy in the financial sector, which have enormous impact,”Von Der Leyen said. “Inflation is spiking, the interest rates have been raised up to 20%, the ruble is in free fall and the goal is to isolate Russia and make it impossible for Putin to finance his war.”
She went on to say the Europeans are looking to invest in alternative forms of fuel and remove dependance on Russian in the long-run, but drivers are concerned about affording this in the short term.
Titus Pittman is a Financial Adviser in Jacksonville who said the White House may tap into strategic oil reserves to help with prices which continue to inflate if the Russian supply is totally cut.
“One of the benefits of COVID is there’s been a wage increase,” Pittman said. “So it’s been able to offset some of those additional costs we’ve seen at the pump with gas, food, clothing. That wage increase has helped to offset those additional costs.”
And oil companies are dealing with political fallout for some purchases.
Shell Oil has come under the microscope for purchasing 100,000 metric tons of crude from Russia. Currently there are no sanctions against buying from Russia, and the oil giant has said it will donate profits to humanitarian aid in Ukraine.