Everyday it seems like gas prices are setting a new record high.
But why is gas so expensive and are there ways to save?
Why are gas prices still going up?
According to AAA, the national average for one gallon of gas is $5.01. That is a $0.40 increase since May, and that price is up more than $1.50 since last year. Usually, there is a seasonal dip in the demand of gas between spring break and Memorial Day that leads to a price drop. However, this year there was no effect.
The primary ingredient in gas is oil, and the prices for oil are up too. Crude oil is trading at around $117.50 per barrel.
The Russian attack on Ukraine keeps driving gas prices higher. Moscow’s crude oil output dropped nearly 9% since April.
There are also expectations for China to ease their Covid restrictions, which will increase the need for oil as their trade ramps back up. A lack of refining capacity also helps keep the prices high.
The impact of high gas prices is felt particularly strong in California as residents are now paying $6.64 per gallon of gas. California’s prices could be the new national average by August.
Are there ways to save gas and money?
If you’re looking to make your car more fuel efficient try: decluttering, keep your tires inflated to optimal levels, and removing your roof rack.
If you lease a car and it is ending, consider switching to a more fuel-efficient or energy-efficient vehicle.