Analysis: Why Russia’s Invasion Is Raising Gas, Food, Car Prices in USRussian President Vladimir Putin’s war is costing American consumers. The invasion of Ukraine is a key factor in high gas, food, car, and other prices.
By Main Street Sentinel Staff
Russia’s war in Ukraine has dramatically increased the price of gasoline in the US and is contributing to the rising cost of food, cars, and other products.
US gasoline prices have been climbing upward ever since Russian President Vladimir Putin began threatening to invade Ukraine and have only gotten higher as the war has continued. Russia is one of the largest producers of crude oil, which is the main component of gasoline. With governments and companies around the world avoiding or banning Russian energy imports in order to hold Putin to account, the global price of oil has skyrocketed – and, as a result, so have gasoline prices.
Putin’s invasion of Ukraine is also contributing to rising food costs. Russia and Ukraine produce a significant amount of the world’s barley, corn, and sunflower seed oil, and together they make up 30 percent of global wheat exports. The war has sent prices of wheat and other foods grown in Russia and Ukraine soaring – costs that can be passed on to consumers if businesses choose to do so.
Additionally, Russia and Ukraine are major suppliers of palladium and neon gas, both of which are crucial to the manufacturing of semiconductor chips. All new vehicles are built with semiconductor chips, and ongoing chip shortages are one of the main reasons for already-elevated car prices. The war has further disrupted chip production, ensuring that cars will not become more affordable in the near future.
Semiconductor chips are also used to make consumer electronics like TVs, computers, and smartphones. Those products could become more expensive as a result of the war.