Gas prices have just set a new national high.
This means that Americans are paying more at the pump to fill their cars.
What is the average price for gas right now?
AAA reports that the national average for a gallon of gas is $4.56. That price is around $1.50 more than it was this time a year ago. Gas is made from crude oil, and that is more expensive right now too. Thus, driving up the cost of gas. Right now, oil is trading at $115 per barrel. Additional details can be found here.
Gas prices tend to fluctuate seasonally. The demand usually dips between spring break time and Memorial day. However, this year there was little impact.
In California, gas prices are well above the national average. On May 17, drivers reported paying $6 for one gallon of unleaded gas. The high prices aren’t exclusive to California. Experts predict that by August, that may be the national average.
What is making gas so expensive?
The Russian war in Ukraine continues to contribute to the high gas prices. Moscow’s crude oil output has dropped by almost 9%. China has been easing their COVID restrictions which will also increase the demand of oil, thus increasing gas prices.
In order to turn crude oil into gas, it has to be refined. Right now, there is also a lack of refinery capacity.