Even though I work from home, I am still feeling the gas prices. I have a 21 gallon tank in my Honda Pilot so filling it, certainly breaks the bank.
I mean, I filled up just the other day and paid just under $3.60 a gallon. YIKES!
So, I get why everyone is freaking the f–k out over the gas prices. It’s been years since we’ve seen them be over $3.
Now, I get that people want to jump to blaming President Biden but in reality, he isn’t the one to blame.
I know, I know, hear me out…
So, you know how last year gas prices where INSANELY cheap? I remember using gas rewards and getting gas for $0.99 a gallon.
Well, because the demand for gas was super low (with everyone stuck in quarantine and working from home) gas was cheap.
However, now that many are getting vaccinated and heading back into a pre-pandemic routine, the demand for gas is a lot higher.
In fact, the demand is so high, gas suppliers cannot keep up (sound familiar? It’s because pretty much everything is like this right now).
This demand and the short supply is driving the gas prices up and causing everyone to feel the pinch on their wallets.
Many of course want to make this political by saying that the Keystone Pipeline is to blame. However, experts in this area, disagree…
“The cancellation of Keystone XL has no current impact to pricing or US supply,” said Parker Fawcett, a Platts energy analyst.Source
“This year, demand has so far increased more quickly than production rates, which means the United States had to draw more on its gasoline storage inventories, which has contributed to prices going up,” EIA spokesperson Chris Higginbotham said in an email to USA TODAY. “We expect oil producers in the United States and globally to increase their production levels through 2022, which we expect to contribute to lower crude oil prices, and lower gasoline prices.”Source
So, how can we get out of this high gas price bubble? Well, Paul Sheldon, chief geopolitical advisor at S&P Global Platts, said in an email:
“The easiest path to boosting short-term supply (and easing price pressure) would be through negotiations with Saudi Arabia, AUE and their partners.”Source
But when can we expect gas prices to fall? Most experts are saying this Fall.
So, for now, we just have to hang tight and try to save every penny we can on gas.
I like taking advantage of the cheaper gas prices at my local Costco and Sam’s Club. I also utilize gas rewards at my local Kroger store to save too.
What are the gas prices like where you are?