Residents of Alaska could get $1,300 from a new energy relief proposal.
This payment is intended to help with gas prices and inflation.
Why are people in Alaska getting money?
The potential $1,300 energy relief checks would be in addition to their annual dividend check in oil. The proposal is currently on hold while lawmakers wait for updated revenue numbers. Click here to read more.
Although the proposal is on pause for now, this isn’t the first time Alaska has done something like this. In 2008, residents were paid $1,200 in energy rebates.
A similar proposal has been made now because of the cost of oil. It is currently ringing in at $120 a barrel. This will lead to higher prices at the gas pump and for heating fuel.
Americans everywhere are paying more, on average it is $4.35 a gallon. But in Alaska, the average is $4.72 a gallon.
Why are the prices higher in Alaska?
Overall, prices are on the rise for a variety of reasons. One of them being the sanctions places on Russia. The drilling cuts made by OPEC during the pandemic also decreased the oil supply. However, demand is starting to go back up as more people return to work.
People in Alaska are more likely to experience high oil prices. Even though they do produce oil, they don’t have enough refinery operations to meet the demand.
To combat this, as the crude oil is pumped out of Alaska, it is shipped to refineries in California and Texas and then shipped back. The shipping costs increase the price Alaskans pay.
Residents of Alaska also have to heat their homes for longer than people who live in the lower 48 states.