The closure of the Philadelphia Energy Solutions refinery following an explosion in 2019 is partially to blame, according to the report. The East Coast could see diesel being rationed as the region’s stockpiles dropped to the lowest levels in decades and national inventories hit 17-year lows.
Gas stations out of gas drivers#
While limited oil supply is driving up the cost of regular gas, drivers of diesel vehicles may also have to contend with an actual shortage, according to Bloomberg. and European sanctions, along with a ban on oil imports from Russia, have caused a global supply shock. imports, the country is one of the largest oil producers in the world and a major supplier for other nations. Even though Russian oil accounts for only 8% of total U.S. Russia’s invasion of Ukraine had an almost instant impact, as it pulled 3 million barrels of Russian oil per day from global supply, the Journal reports. is the world’s largest producer of oil and processed petroleum, it’s also dependent on imports from other countries to meet demand. Petroleum refineries were slow to ramp up after tapering production at the start of the pandemic, and as demand surged following relaxed pandemic restrictions, production failed to keep up according to the Wall Street Journal, the market has lost about 1 million barrels of daily petroleum-refining capacity since early 2020.Īlthough the U.S. Gas prices first started rising because of tight oil supply amid quickly growing demand. The fluctuating oil prices are determined by a delicate global balance of supply and demand. As of June, the cost of a barrel of oil was around $120 - nearly double the price compared to August 2021, according to AAA. Energy Information Administration estimated crude oil accounted for 59% of the price of a gallon of regular gas that’s up from 54% in 2021. The main reason for higher fuel costs is the price of crude oil from which fuel is refined. Federal and state taxes are about 50 cents.” So, Why Are Gas Prices High? Gas station | photo by Joe Wiesenfelder For every $4.94 you pay for a gallon of gas, oil accounts for $3. However, the price is high because oil is the main ingredient, and it’s costly right now. If you’re in the market for a new car, you’re well aware that vehicle prices are up due to the ongoing inventory shortage - but is a gas shortage driving up prices at the pump?Īccording to AAA spokesperson Andrew Gross, “there is no gas shortage.” Gross noted in an email to that “the U.S. The bad news? It’s still well above the $3.07 per gallon national average seen the same time in 2021. The good news? That’s slightly down from $5.01 a week prior, and it’s the first time in months that prices have fallen below $5. On June 22, the national average for the price per gallon of regular gas was $4.96, according to AAA’s gas price tracker. Unless you drive an electric vehicle, you’ve probably noticed that your fill-ups are taking a larger bite out of your monthly budget recently.
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