Rise of Gas Prices in America

 Rise of Gas Prices in America

Written By: Lucas Nesthus

For most of 2022 thus far we have had a rise in the prices of gasoline compared to previous years. It seems that even more recently in the month of march that the average price for a gallon of gas has reached an all time high within just this past week. The rise in these gas prices are leaving consumers and residents in America questionable about the future of the economy within the U.S. Are we seeking a decline in the economy for future years? When will the gas prices go down back to the way they were? These are a few of many questions Americans have with how gas prices are influencing the economy. I will give you insight and present you research on why this is happening. 

The gas prices are starting to push just under 5$ a gallon on average as well as the inflation rate coming at 7.9%, it’s no doubt that us Americans are feeling overwhelmed and unsure about the future as this is what the economy is looking like as of right now. There are many predictions being made about what the economy will look like based on current numbers, Sam bullard, managing director and senior economist predicts that the “CPI (Consumer Price Index) Inflation will increase and average out at 7.5%,” this shows that Americans are going to have to pay more for products and services overall and not just gas prices. With all this happening, costs are expected to rise throughout the year. The real question is what is the root cause of all the inflation and the rise in gas prices? As many people know, more than one factor can be part of a contributor to the prices of gas, but more notibally, recently with the Russian invasion on Ukraine has played a big part in the rise in gas prices and inflation itself. It has caused the lack of imports with supply chain issues to decrease the amount of oil in our economy. The fact that unions and other intergovernmental organizations like the European Union are restricting Russia to sell its natural oil plays a huge part in the rise of gas prices and is one of the biggest ways that people get their oil, especially the United States. 

Above is an example of gas prices coming from Los Angeles, California in the month of march to show that this is genuine and fluctuating in different parts of the country. Obviously we know that there are more factors other than the main causes, the loosening of COVID restrictions and traveling, lifted mandates around the country to allow for more transportation, upcoming breaks that will cause people to require more gas when driving long ways, visiting family, etc. Now with that being said, there is going to be an increase in demand on gas with the shortened gas supplies or reduced gas supply which will contribute and be the cause of the rise in gas prices around the country and even the world. 

Works Cited

Mendoza, Jordan. “Why Are Gas Prices Rising so Quickly? and How High Are They Expected to Get?” USA Today, Gannett Satellite Information Network, 10 Mar. 2022, https://www.usatoday.com/story/money/2022/03/07/why-gas-prices-rising/9417091002/. 

Surging Gas Prices Drive Consumer Sentiment Even Lower ... https://www.usnews.com/news/economy/articles/2022-03-11/surging-gas-prices-drive-consumer-sentiment-even-lower.