SALT LAKE CITY: A month ago, the sign at your local gas station could read $ 2.45 a gallon.
Now we flirt with $ 3 a gallon. So what’s up?
Currently, the national average for a gallon of gas is about $ 2.80. States are grouped into regions according to gasoline distribution and western states are always the most expensive.
The Utah Intermountain region is usually just behind.
Geography has to do with what it costs to fill the tank. Gulf Coast states always have less expensive gas because they refine more than half of U.S. supply. Demand in the area is much lower than this amount.
However, that doesn’t explain why gas is rising for everyone, from Houston to Hurricane.
Over the past 18 months, gas prices have fallen due to low demand as the pandemic halted travel before reaching pre-pandemic levels over the last month or so.
The last time the Wasatch Front was below $ 2 per gallon in the last five years was in March 2016. The highest point, which pushed $ 3 per gallon, passed in 2018.
It is true that politics and legislation have an impact, but most of the strong ups and downs have to do with other factors.
Right now, the United States has 56% refining capacity, which is the lowest on record. And the recent weather in Texas hasn’t helped.
Oil-producing countries that cut production when the pandemic began also announced that they are in no hurry to re-pump crude. This has created an artificially low supply.
Demand is also booming as states reopen and the more expensive gasoline mix in the summer makes it cost more in the coming months.
It’s easy to point fingers and blame those in power, but who has the power to adjust gas prices? That’s where things get complicated.
History shows that the roller coaster of gas prices can be a bumpy ride and it looks like right now the US is climbing to the top.