Gas Prices

 Gas Prices 

Written By: Ava Guth

As many of us have or are earning our driving license, we are having to pay for gas. However, within the last year, gas prices have hit a seven year high. Though this doesn’t seem like a major problem to us now, it will be in the future as gas prices continue increasing every week. The main reason for these increased gas prices is because of high demand and constricted supply. 

Demand for gasoline is so high because there are many more drivers on the road. After a tremendous decline in the amount of vehicles on the road during Spring of 2020 during quarantine, the economy wasn’t prepared for the large amounts of gas needed to fuel the 290.14 billion miles being traveled by vehicles in the US. However, gas prices vary depending on which region of the country you are located. Since we are in Wisconsin our gas prices are increasing, but not as much as the West Coast and Rocky Mountain regions. Reason being for more tourists driving around the area and needing lots of fuel to get around those mountains. In the midwest we actually have some of the lowest gas prices compared to the rest of the country, even though ours are still increasing. 

The constricted supply is due to countries using their resources as an advantage. For example, the Organization of the Petroleum Exporting Countries (OPEC) have only been agreeing to slight increases in oil production, even after America’s and India’s pleas for more. Recently, they have agreed to 400k barrels per day. Crude oil is also known as petroleum which explains the name of the OPEC. However, crude oil prices are also increasing and the US stockpile of oil is at a historical low, at 1.03 billion barrels of oil. 

Even though gas prices in other areas of the country may not be important to you now, the entire economy will suffer from it. So even though we have free lunches at school and such, the opportunity cost is we are having to pay more for living expenses like fuel for our cars. Plus, with some of you going to college out of state, these rising gas prices may affect your wallet more than here at home. In the near future, be aware that gas prices are something that you will be dealing with as we become adults and keep in mind to manage your money and living expenses well enough to not have to worry about this rising problem.

Works Cited

Kiersz, Andy. “3 Reasons Why Gas Prices Are so High Right Now.” Business Insider, Business Insider, 25 Nov. 2021, www.businessinsider.com/why-are-gas-prices-so-high-right-now-3-reasons-2021-10.

“U.S. Energy Information Administration - EIA - Independent Statistics and Analysis.” Retail Gasoline Prices Rose across the United States in 2021 as Driving Increased - Today in Energy - U.S. Energy Information Administration (EIA), www.eia.gov/todayinenergy/detail.php?id=50758.

“Vehicle Miles Traveled.” FRED, 24 Jan. 2022, fred.stlouisfed.org/series/TRFVOLUSM227NFWA.