SALT LAKE CITY – A month ago, the sign at your local gas station may have read $ 2.45 a gallon.
Now, we’re flirting with $ 3 a gallon. So, what is happening?
Currently, the national average for a gallon of gas is about $ 2.80. The states are grouped into regions according to the distribution of gasoline, and the western states are always the most expensive.
The intermontana region of Utah is usually just behind.
Geography has to do with how much it costs to fill your tank. Gulf Coast states always have less expensive gas because they refine more than half of all supplies in the United States. Demand in the area is well below that value.
However, that does not explain why gas is rising for everyone – from Houston to the hurricane.
In the past 18 months, gas prices have plummeted due to low demand, as the pandemic interrupted travel before jumping to pre-pandemic levels last month.
The last time Wasatch Front was below $ 2 a gallon in the past five years was in March 2016. The highest point – pushing $ 3 a gallon – happened in 2018.
It is true that politics and legislation have an impact, but most of the ups and downs have to do with other factors.
At the moment, the US has 56% of the refining capacity, the lowest ever recorded. And the recent weather in Texas has not helped.
The oil-producing countries that reduced production when the pandemic started also announced that they are in no hurry to start pumping oil again. This created an artificially low supply.
Demand is also growing as states recover, and the more expensive mixture of gasoline in the summer makes the coming months more expensive.
It is easy to point the finger and blame those in power, but who has the power to adjust gas prices? That’s where things get complicated.
History shows that the gas price roller coaster can be a bumpy ride, and it looks like the US is climbing to the top right now.