ATLANTA — We’re already dealing with inflation at the gas pumps and grocery stores, but now that Russia has invaded Ukraine, you can expect prices to go up even more.
Russia is a significant gas supplier, providing about 10% of the global gas supply.
Experts told Channel 2′s Christian Jennings not to be surprised if we see an average of $4 a gallon for gas in weeks, if not sooner.
“In the short term. We know how it’s going to play for our wallets. It means that things that we depend on every day and weekly are going to cost more,” said Channel 2 consumer advisor Clark Howard.
But longer term, you can’t predict anything from what’s happened so far.
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Ray Hill is a professor at Emory University’s business school. He said it all depends on the types of sanctions the U.S. imposes on Russia moving forward.
“I think it’s going to be short term because at $100 a barrel for oil, we can produce in the US a lot more oil,” Hill said. “The only thing I think would make gas prices even higher and last longer is if the sanctions extend in some way to keeping Russian oil out of the world market.”
Russia’s invasion could have global economic repercussions that increase food prices around the world.
But here at home, Hill said we shouldn’t panic.
“They’re just not big enough in the world economy to drive commodity prices in any significant way,” Hill said.
If the national average for gas reaches $4 a gallon by next month, it will be the first time we’ve seen that level since 2008.
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