How Russian oil ban could affect Nebraska

As President Biden issues a ban on all energy imports from Russia, many expect it to have an impact on gas prices.

LINCOLN, Neb. (KLKN) — It’s safe to say that many have already been feeling the hurt at the gas pump, with the national average hitting over $4 a gallon for the first time since 2008.

“We have never seen price increases as dramatic as what we’re seeing right now,” said Mark Whitehead, the president of Whitehead Oil Co.

On Tuesday, President Joe Biden banned all Russian energy imports because of the Ukraine invasion.

Many expect an even bigger price increase at the pump because of the ban, but exactly how big is yet to be determined.

About 3% of oil used in the U.S. last year came from Russia, and while that may not seem like a lot, the oil and gas industry operates on a world market, which means this ban will certainly have an impact.

The goal of the ban is to hurt the Russian’s pocketbook even more.

“It’s worth $17.5 billion to the Russians annually,” said Rep. Jeff Fortenberry of Nebraska. “That’s American money going to the Russians, 40% of which funds their government.”

Fortenberry said that while he realizes the effect rising gas prices might have on Americans, he believes that the sights and sounds from Ukraine will help Americans understand the need for sanctions.

“I think most Nebraskans certainly, probably perhaps most Americans, are willing to pay that price, as they look at the horror of what’s happening: The Russians targeting women and children, taking over an entire country.”

Categories: Nebraska News, News, Top Stories, US & World