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AAA: Lincoln gas prices hit record high

The last time Lincoln saw these prices was in July, 2008, during the Great Recession.
Published: May. 18, 2022 at 4:13 AM CDT
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LINCOLN, Neb. (KOLN) - Lincoln has a new record when it comes to the average price of a gallon of regular gas, according to AAA.

The new average set Wednesday morning hit $4.20 a gallon. That was up five cents from Tuesday, and broke the previous record set back on July 14th, 2008, when the average price for a gallon of regular reached $4.16.

As of Wednesday morning, AAA reported that the average for Nebraska is now up to $4.14 a gallon, also a new record. The record was still well below the national AAA average price of $4.57, a a five cent increase from Tuesday morning.

The record prices and continued surge come as the result of numerous disruptions, including the war in Ukraine, record U.S. inflation, and the impacts of the COVID-19 Pandemic.

The Biden administration has come under pressure to increase U.S. crude production as a result of those factors. The United States and other nations have also banned imports of Russian oil, driving up prices worldwide.

Oil companies say they have increased production as the economy recovers from the coronavirus pandemic, but they have been reluctant to ramp up production further, citing a shortage of workers and restraints from investors wary that today’s high prices won’t last. Decisions by the OPEC+ oil cartel, led by Saudi Arabia and Russia, to only modestly increase supplies to the world market have also kept prices high.

Major oil companies reported surging profits in the first quarter and are sending tens of billions of dollars in dividends to shareholders, along with stock buybacks that have sharply increased the value of investor holdings.

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