Gas prices in Illinois have dipped to their lowest point since June, with the statewide average currently at $3.99 per gallon according to the latest data from AAA.
While the recent drop in gas prices has allowed many Illinoisans to re-ignite their late summer trip ideas and hit the road, one federal official warns prices can skyrocket once again this winter.
Prices reached all-time highs earlier this year as prices worldwide skyrocketed due to supply chain issues spearheaded by the Russian invasion of Ukraine in February. Supply chain issues were exacerbated by the conflict, which has sparked inflation across virtually every worldwide industry.
At the same time gas prices peaked at record high levels in Illinois, grocery prices had seen their steepest price increases in over 40 years.
While prices have since subsided in Illinois and across the country, U.S. Treasury Secretary Janet Yellen warned in a recent appearance on CNN that prices could bounce back up in the coming months as G7 countries work to place a cap on the price of Russian oil.
According to Yellen, the risk of a price spike originates from the European Union's severe cut-backs on Russian oil alongside a ban on services that allow Russia to ship oil via tanker. Without a price cap, this could cause a global spike in oil prices.
As of Sept. 13, California has the highest average gas price in the nation at $5.42 per gallon. The lowest prices can be found in Texas, where the average price of a gallon of gas currently stands at $3.14.
Local
Yellen described the effort as an attempt to both decrease Russian revenue as the war in Ukraine continues and maintain oil supplies that would help bring down global oil prices.
The secretary has previously touted the plan as a powerful tool to both protect American workers and fight inflation and future price spikes.
Feeling out of the loop? We'll catch you up on the Chicago news you need to know. Sign up for the weekly Chicago Catch-Up newsletter here.
In addition to higher prices at the pump, natural gas costs are also expected to significantly increase this winter due to volatility stemming from the war in Ukraine.
According to an analysis from Crain's Chicago Business based on natural gas futures, Peoples Gas customers can expect a 44 percent increase in costs from November to March. For Nicor Gas customers in the suburbs, the increase is expected to be even more pronounced, at 59 percent.
A statement from Peoples Gas said that while it remains too early to reliably estimate exactly what natural gas costs will look like this winter, heating bills are expected to be higher.
The expected price hikes come as inflation has greatly affected the American and worldwide economy in recent months, with the annual inflation rate currently at 8.3 percent from August 2021 to August 2022.
