The Rise In Oil Prices and Available Electric Alternatives
The price of gas is quickly burning a hole in the pockets of the American public. And the scary thing is, this might only be the beginning. The U.S. has not seen a rise in oil prices and fuel costs this high since 2008 when the cost of gas was priced at $4.103 per gallon. If we adjust that in accordance with inflation, it would equate to $5.24 cents today, as reported by GasBuddy–a popular fuel-savings app that provides users with the cost of gas at stations in their area. This is a number, however, that experts believe can be surpassed with the way things are heading.
What is causing the increase in gas prices?
Gas prices were already on the rise prior to the war starting in Ukraine. The United States is the largest producer of oil in the world, ahead of both Saudi Arabia and Russia, producing about 18.61 million barrels of oil per day. Not only that, but the U.S. is also the largest consumer of oil. Americans use around 20.54 million barrels of oil per day. That leaves a difference of about 2 million barrels of oil per day that the U.S. has to import since we are not able to meet the overwhelming demand for oil with our domestic crude alone.
The increase in demand for gas and the reduction in its supply is what initially began driving gas prices up. With the circumstances of the COVID-19 pandemic, it was a struggle to get petroleum products imported because of the backup in the supply chain, which was seen on a global scale. It wasn’t until recently that the effects of the pandemic on gas started to lessen and were not so drastic.
Where the rise in oil prices stems from
The recent spike in gas prices per gallon is attributed to the Russian invasion of Ukraine. In addition to the global rise of inflation. The United States, as well as other countries, import oil from Russia–the second largest producer of oil behind the U.S. In 2021, the U.S. brought in 245 million barrels of oil from Russia, which is less than the amount imported from Canada and Mexico, but makes up about 8% of all U.S. oil imports.
Because of the increasingly violent attacks from Russia on Ukraine, the U.S. and other countries are looking to cut off and ban any imports coming from Russia. Countries plan to decrease the amount of money given to Russia for oil and natural gas exports in retaliation to Russia’s invasion of Ukraine.
How high could prices go?
The national average of gas prices continues to increase with each week that passes. The average price per gallon will be $3.99 in 2022. GasBuddy’s gasoline forecast for this year predicts the average cost of gas per gallon will peak in May but is still expected to remain over $4 until November. Patrick De Haan, the head of petroleum analysis at GasBuddy, stated that the national average may reach $5 a gallon. This all due in part to the ongoing conflict in Ukraine.
Ways to combat the rise in gas prices
- Drive strategically. Google maps now has an option when you’re mapping out your commute to take the most eco-friendly route. You can also try carpooling to work, school, or sports practice to help reduce gas-usage.
- Track gas prices. There are plenty of apps that you can download on your smartphone that allow you to track gas prices and see where the cheapest gas is near you.
- Pay with cash. Paying with cash at the gas station can save you anywhere from 10 to 15 cents per gallon over credit card transactions.
- Check out a few other ways to save money as a modern driver.
Electric alternatives for the rise in oil prices
Fortunately, electric vehicle owners are not feeling the impact of prices at the pump as greatly. Most vehicles are more fuel efficient today than they were in 200. With more electric and hybrid vehicles on the road, our overall fuel economy is much better. Particularly in comparison to 14 years ago. Making the switch to electric could be the way to go considering the future of gas prices. If you’re interested in opting for an electric vehicle, we have a list of some of the best green vehicles on the market.
What is your reaction?
Gas prices are out of control. Something needs to be done about this about these prices. I have used gasbuddy in the past and didn’t find any significant savings difference from the pump cost. I do find that for example if you stop at a Shell gas station and have their app you could save at least 5 to 10 cents a gallon. It definitely does help. Hopefully when the war in Russia is over the prices will drop.