top of page

What's behind higher gas prices?

Some experts say that the increased gasoline prices Americans feel are attributable to policy decisions by President Biden, the Russian invasion of Ukraine, and other factors.

According to GasBuddy, the average price of gasoline is $4.30 per gallon today. This is the most expensive gasoline since the United States boosted its refining capacity in the 1920s. Due to cheap diesel, the cost of transporting goods has also increased, burdening the entire economy.

Gas was about $2.50 per gallon in early 2020, before the COVID-19 pandemic hit the U.S.

As a result of the pandemic and follow-up lockdowns, demand plunged Oil producers began cutting back at the end of March, producing a supply glut gas prices dropped to about $1.75 for a while as storage filled up and holders of delivery contracts paid to get the oil out of their possession.

In the fall of 2020, in fact, vaccines were delivered to the blue states, giving people confidence that reopening would be possible. A few months after the crisis began, red states in particular started to open up again (some had not shut it down at all).

As of March 2021, both gasoline demand and gas prices had returned to levels that existed prior to the pandemic. However, while the demand continued to build and the price increased, oil production never returned to pre-pandemic levels.

17 March 2022


Top Stories

bottom of page