Gasoline, diesel prices reach all-time highs

Yahoo Finance reporter Ines Ferre details the latest rise in gasoline and diesel prices.

Video Transcript

BRAD SMITH: The all-time highs that we're seeing right now for retail gasoline, so barring a recession, high energy prices, they are going to be with us for several years, it seems.

INES FERRE: Yeah, that's right, and that's according to Andy Lipow from Andy-- from Lipow Oil Associates. I spoke to him about this issue. He wrote in a commentary a couple of days ago about these high energy prices and saying that barring a recession, we are going to see these high energy prices for several years. He goes into several reasons why I'm actually writing a piece on this. You can check it out on Yahoo Finance later today.

But I did ask him, look, if there is a recession, what will happen to these oil prices? He says that if demand goes down by about 10%, you can expect to see oil prices come down anywhere between $35 and $50 a barrel. As far as gasoline prices, you can expect gasoline prices to come down by as much as $1.25 per gallon. By the way, gasoline prices right now are at all-time highs. You're looking at $4.40 a gallon in the US. That's average. In some states, it's even more than that. Diesel prices are at $5.55 a gallon.

And the bottom line is, is that some people are definitely modifying their habits because of this. We have seen surveys. We've seen studies of foot traffic. People are consolidating their trips. They are trying to spend less gasoline when they're trying to-- maybe even not even filling up their gas as much, their tanks as much. These prices are definitely-- you are starting to see some demand destruction. Nobody wants a recession, but if there is one, expect to see these prices come down.

BRIAN SOZZI: And you know where you see it, Ines-- higher diesel prices, higher costs to ship eggs, egg price inflation. You just stop buying eggs. So we'll just tie it all together here. Ines Ferre, thanks so much.

INES FERRE: Yeah.