Gasoline prices continue to rise as holidays approach

Berks County drivers had to travel through stormy weather this summer. But when it comes to the price of a gallon of petrol, it’s in the midst of what has proven to be the perfect storm for consumers.

Barks prices on Friday averaged $ 3.45 per gallon on a regular basis. Gas buddy.. That’s the highest average of seven years, rising 27 cents a month and 95 cents a year.

After a year of coronavirus pandemics, the May average exceeded $ 3 per gallon due to increased demand from drivers who wanted to get out on the road. This is the first time prices have remained at that level since the summer of 2018, according to GasBuddy records.

Hurricane Aida passed through the Gulf Coast of the United States about six weeks ago, closing major oil refineries in the region for a long time, and average gas costs continue to rise.Another factor is Lack of logistical supportOil and gas are yet another consumer goods waiting to be unloaded at the port, and truck companies that ship them say they are experiencing a labor shortage. Forbes..

The latest hit is from the old enemy OPEC.

At a recent meeting, OPEC, along with major non-members of oil production, agreed not to increase production after previously agreeing to do so. After temporarily dropping below zero During the April 2020 coronavirus pandemic, the price of a barrel of oil exceeded $ 80 last week.

“Crude oil is the main driver of this recent rise in gas prices, which typically accounts for 50% to 60% of pump prices,” he said. NS Spokesman Andrew Gross. “And last week’s decision not to further increase production by OPEC and its oil-producing allies only exacerbated the momentum of rising oil prices.”

OPEC, Russia and its allies have decided to maintain a daily production cap of 400,000 barrels per day in November instead of the previously agreed 800,000 barrels per day.

In addition, AAA said prices rose due to a slight increase in gas demand in the United States.

Patrick de Khan, Head of Oil Analysis at Gas Buddy, said: “The country’s gasoline prices have also been pushed to their highest levels since 2014, all due to OPEC’s decision not to produce more than already agreed in July.

“OPEC’s decision has triggered an immediate reaction to oil prices, and in the midst of a global energy crisis, drivers are now spending more than $ 400 million on gasoline every day than they were just a year ago. “De Haan said. “The problem continues to be related to the surge in demand as the global economy recovers and the significant reduction in production from the early days of the pandemic.”

DeHaan says drivers will continue to rise for the foreseeable future if they do not reduce their travel prices. This is a difficult order that Thanksgiving and Christmas are just around the corner.

“If Americans can’t slow down their desire for fuel, we have no choice but to raise prices,” he said.

Gasoline prices continue to rise as holidays approach

Source link Gasoline prices continue to rise as holidays approach

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