Pump shock: Why gas prices are so high
Gas prices have more than doubled in two years, saddling millions of people who drive cars and trucks every day with enormous costs.
What happened?
Everything.
A rare combination of economic and geopolitical forces now manifest themselves at the gas pump. The economy’s rapid recovery from the pandemic created more demand for gasoline, pushing prices higher. Then, the invasion of Ukraine led to a global backlash against Russia, which produces more oil than all but two other countries. So prices went higher again.
February 2020
$2.53
$37.95 to fill up a 15-gallon car
April 2020
$1.94
$29.10 to fill up a 15-gallon car
April 2022
$4.21
$63.15 to fill up a 15-gallon car
June 10, 2022
$4.99
$74.85 to fill up a 15-gallon car
Even if the price of oil comes down, the disparity in gasoline prices will continue in different parts of the country. Prices can be particularly high in the summer, which is bad news for the millions of travelers hopping into their cars to go to the beach, visit grandma or even go to work.
What’s next?
In Washington and around the country, leaders are split over how to respond to the high prices. Some governors are calling for the suspension of gas taxes to temporarily lower fuel prices, though that will pull money away from road projects. The White House is releasing oil from the Strategic Petroleum Reserve and taking steps to ease some emissions rules over the summer to increase the availability of gas. Republicans have called for more domestic oil production as a way to decrease reliance on imports.
This series is an examination of some of the most prominent economic themes of the year, explaining to readers their origins and impact during this highly uncertain period. These topics affect the finances of all Americans, and understanding what is happening can make you better prepared for what happens next.
