The average US gasoline price has reached more than $5 a gallon for the first time, as per AAA gas price data even as decreased supply and increased demand is contributing to rising prices triggering inflation in the US.

Despite the high gas price, driving on the US roads have not slowed during the summer months. According to US Energy Department figures, the US gasoline average is still approximately 8% below June 2008 highs of around $5.41 a gallon.

So far, consumer spending has remained buoyant even with inflation running at its highest level in more than four decades. Substantial household savings as a result of pandemic relief programs and a tight job market has fueled strong wage gains, especially for lower-income workers.

Reacting to the hike in oil prices, US president Joe Biden while addressing May inflation data has targeted ExxonMobil, world's largest publicly traded energy providers and chemical manufacturers, to invest their profits and pay taxes. Oil companies in recent months have earned huge windfalls as a result of high oil price.

Exxon's net profit was $23 billion in 2021, making up for the $22.4 billion loss the year prior. Exxon's 2021 profit came in behind Apple, Berkshire Hathaway, Alphabet, Microsoft, JP Morgan Chase, Meta Platforms, Amazon, and Bank of America. Exxon’s income taxes for Q1 2022 alone were $2.8 billion dollars, with full year 2021 income taxes at $7.6 billion, according to Macrotrends and CSI Market.

Crude prices rose last week after OPEC+ announced it would increase monthly production to 648,000 b/d in July and August instead of 400,000 b/d as previously planned. However, the oil market remains volatile when it comes to supply as the EU plans to implement a 90% ban on Russian oil imports by the end of this year.