Why are gas prices so high?

Why Have Gasoline Prices Inflated Dramatically?

Charlie Bathke| 12/2/2021

Usually, gasoline prices will inflate in the spring as companies must switch to using a summer-blend fuel and then go back down to their normal prices as there is less of a demand for gas after summer. This has not been the case recently. Ever since May of 2021 gas prices have been over $3.00 a gallon and still are rising exponentially.

In September of 2020, the price of gas per gallon was $2.258 but only a year later the price increased by over a dollar and now is $3.389 per gallon. This brings up the question why is it that gas prices are being inflated so much? Everyone has their own beliefs in which gas prices are increasing, but the real reason is that oil is becoming a scarce resource and the demand for gas has been rapidly increasing.

As the price for oil keeps increasing, the gas price will increase with it. As you may or may not know oil is a necessary ingredient to make gasoline. “40% of a barrel of oil is used to produce gasoline,” states energy.gov.

Oil is considered a scarce resource because there is less supply available than what is demanded. This will cause gasoline prices to rise so that the supply to demand ratio can be even. According to convenience.ord, “Oil prices have gone up 48 cents per gallon in the past two months. During this time gas prices have increased 15 cents—from $3.17 to $3.32 per gallon.” This proves that when oil prices inflate, gas prices inflate with it.

Covid is becoming less relevant meaning more people are willing to go places. This is increasing the gasoline demand. There is more demand for oil than there is to supply forcing the oil prices to increase. According to businessinsider.com, “The number of vehicle miles traveled measured by the Federal Highway Administration plummeted in spring 2020, but in the last few months, highway traffic was back up to what would normally be seen in midsummer.”

There were so many fewer people driving in April of 2020 compared to any other month. In April of 2020 gas prices were under 2 dollars per gallon. Now when you look at how many people are on the road it is the same as usual which inflates the gas prices to $3.384. This shows that when the demand for oil and gas is decreasing the price of oil and gas will decrease too.

Gasoline prices have been inflated insanely high but there is an obvious cause. The more scarce oil becomes and as the demand for gas keeps on increasing, the price for gasoline will continue to inflate.