HOLLAND — If you filled up your tank Sunday in Holland, you likely paid around $3.89 per gallon. Those numbers continued in the early morning hours Monday, but are expected to rise — and fast.
According to AAA’s survey of more than 4,200 stations in Michigan, gas prices soared 42 cents over the past week, reaching their highest rate since June 2013 and landing at $3.97. Prices are 60 cents per gallon more than a month ago and $1.25 per gallon more than a year ago.
Motorists are paying an average of $59 for a full 15-gallon tank of gasoline, as the conflict between Russia and Ukraine continues to bring uncertainty to the market.
To help counter the impact of rising oil prices, the International Energy Agency has coordinated a release of 60 million barrels of crude oil from its 31 member countries’ strategic reserves, including the United States, Germany, Canada, South Korea and Mexico — according to AAA. That’s equivalent to 2 million barrels a day for 30 days.
Half of that contribution is expected to come from the U.S. However, the impact on pricing is limited, since Russia exports about 5 million barrels of crude oil per day, representing about 12 percent of global trade.
“There are few words to describe the unprecedented rise in gasoline prices over the last week, with massive spikes coast to coast in both gasoline and diesel prices, as oil prices jump to their highest since 2008,” said Patrick De Haan, head of petroleum analysis at GasBuddy, in a weekly release. “Forget the $4 per gallon mark — the nation will soon set new all-time record highs and we could push closer to a national average of $4.50 per gallon.
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“California could be heading for $5.50 per gallon with more stations charging $6 and beyond. We’ve never been in this situation before, with this level of uncertainty. As we lose a major global producer under the weight of deserving bipartisan sanctions for invading a sovereign country, the cost is high. Americans will be feeling the pain of the rise in prices for quite some time, with little good news foreseen.”
De Haan warned on Twitter on Sunday, March 6, that prices were expected to rise to $4.29-$4.49 on Monday along the Great Lakes — including Michigan, Indiana and Ohio.
AAA advises drivers to combine errands to limit driving time, shop around for best prices, consider paying cash (some retailers charge more per gallon when paying with a credit card), remove excess weight in vehicles and enroll in savings programs.
— Contact reporter Cassandra Lybrink at cassandra.lybrink@hollandsentinel.com. Follow her on Instagram @BizHolland.