The United States could experience another increase in gas prices in the upcoming months following a recent substantial dip, according to Treasury Secretary Janet Yellen.
Gas prices reached a national average of just over $5 per gallon in June but have since decreased dramatically since then. However, according to Yellen, Americans should prepare for the possibility that prices could rise again this winter, according to Fox News.
Yellen was questioned about whether Americans should anticipate a raise during her Sunday appearance on CNN.
“Well, it’s a risk, and it’s a risk that we’re working on the price cap to try to address,” Yellen said, referencing an effort by G7 countries to place a price cap on Russian oil.
The treasury secretary said that it is likely the European Union will dramatically reduce their Russian oil purchases, to the point of possibly ending the relationship altogether. That, plus a ban on services that ship oil from Russia could work together to make oil prices increase.
While outlining the possibility that prices could go up, Yellen also explained that this was part of the motivation for the plan by G7 nations to pre-cap Russian oil, which would mean decreasing revenue for Russian President Vladimir Putin during his continued conflict with Ukraine.
According to Yellen, this plan would also allow the nations a chance at “maintaining Russian oil supplies that will help to hold down global oil prices.”
After pushing G7 to impose a Russian oil price cap, Yellen warned the unprecedented measure is a "risk" that could "cause a spike in oil prices"
— Mona Salama (@ByMonaSalama) September 12, 2022
"Its a risk & its a risk that we're working on the price cap to try to address. It is possible that could cause a spike in oil prices" pic.twitter.com/DhL7XlSHVe
President Joe Biden has blamed the skyrocketing gas prices on Russia and the nation’s decision to stop buying oil from Russia due to their conflict with Ukraine. However, on the day that the invasion of Ukraine began, the price of gas was at a national average of about $3.54 per gallon, according to Fox News.
When the current president took office in January of 2021, the national average was reportedly about $2.39.
As of the first week in September, AAA recorded the national average for a gallon of gas stood at about $3.72, which is down from its high of approximately $5.02 on June 14. This is still up slightly from the totals from one year ago in September 2021 when gas was about $3.18 per gallon on average.