The gas prices are rising significantly, and with every passing month, they soar higher. The main problem is why are gas prices going up and how can it be tackled globally. The average gas price in the U.S. as of mid-April is $3.679 per gallon (19 April 2024).
Majorly, after Iran attacked Israel, es increased significantly globally. But fell back after Iran downplayed the Israeli attack on drones in its region. However, oil prices have been increasing since Russia Russia-Ukrainian conflict. Later, the Middle East conflict between Israel and Palestine influenced the oil prices as well.
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Why are Gas Prices Going up in the USA?
In the USA, the price of oil has a 4-cent jump from last week, while 19 cents higher than last month. Last month, the average price of gas per gallon was $3.489. As of 2024, the gas prices have increased by 59 cents (national average), but a gallon costs the same amount as at the end of 2023.
Although, had prices are increasing significantly, however, their inflation is less as compared to the previous two years (2022, 2023). The highest prices ever recorded were at a whopping $5.016 in 2022.
What are the Highest Prices of Gas in the United States?
In the States, California has the highest rate of gas, at $5.450 per gallon. Drivers are facing the highest average rates in California in 2024.
The highest rates in U.S states are as follows:
- California: $5.450
- Hawaii: $4.781
- Washington: $4.672
- Nevada: $4.632
- Oregon: $4.441
Lowest Gas Prices in States
In states, Mississippi has the lowest gas prices. The Mississippi oil rates fall at $3.111 per gallon. The lowest rates of gas in the United States of America are the following:
- Mississippi: $3.111
- Louisiana: $3.179
- Colorado: $3.183
- Oklahoma: $3.211
- Arkansas: $3.242
CPI Index and Rise in Gas Prices in March 2024
U.S. rise in March 2024 due to increasing gas prices leaving U.S. residents to wonder why are gas prices going up. On April 10, the Bureau of Labor Statistics issued a report on the current Consumer Price Index (CPI) stating that gas prices influence food, basic amenities, and rent prices directly.
The gasoline CPI index tracks:
- All kinds of gas prices increased by 1.7% between February and March
- In the past year, 2023, gas prices went up about 1.3%
The energy prices aren’t included in the inflation cpi index as they are volatile resources. Both Economists and policymakers don’t include them while calculating the rates. However, an increase in oil proves to have a prominent impact on the economy of a country.
How Does Israel’s Confrontation with Gaza Impact Gas Prices?
Although Gaza and Israel don’t supply oil, however, their association with the oil richest countries is impacting the price at the pump. Moreover, the war between the two nations has motivated various groups elsewhere, including an attack on commercial ships at the Red Sea.
The Yemen Houthis carried out the raid on commercial shippers and disrupted the normal trade route. Due to the Temen attacks, traders have to take longer routes to reach their destination without any mishap. Therefore, shippers need to pay more amount for trading their material over the sea route.
Apart from that, various oil-rich countries are supporting Palestine, including Iran. Therefore, the oil prices fluctuate rise according to tension in the Middle East. You might not be aware, but Itan is the world’s third-largest oil producer and reservoir in the Organization of the Petroleum Exporting Countries (OPEC).
Iran roughly supplies or pumps about 40% gas of the global crude oil supply.
What are Different Types of Gases?
There are four different types of gases available at the pump stations at distinct prices. The gases are divided into three non-diesel types of gasoline based on fractional distillation. Whereas, octane rating ensures the quality of the product from regular to midgrade to premium.
Octane range is a measure of fuel stability which is categorized as:
- Regular: The least expensive and has the lowest quality.
- Midgrade or super: More expensive than regular gas and has better quality as well. It’s cheaper than premium and diesel.
- Premium or super premium: Most expensive non-diesel gasoline due to its high quality.
How Gas Prices are Determined in the U.S.?
If you want to know how gas prices are determined in the U.S., and does the president selects the gas price, it will be covered in the article. Gases prices don’t depend upon a single individual or factor, the price start fluctuating before the local station can pimp it up.
According to the United States Department of Energy, gas prices depend on various factors, including:
- The cost of raw crude oil. The cost of crude oil is specified by international supply and demand at hand.
- The cost to refine crude oil into gasoline
- Taxes, which vary from state to state
Conclusion
In short, the answer to why are gas prices going up is the global recession, conflicts in different parts of the world, and loss of oil sources. Therefore, gas prices keep fluctuating and pricing with the minimum tension in the oil-producing countries. Has has become a way of influencing countries and global rulings in macrocosmic politics.
In the future, gas and oil prices might keep on plummeting rather than stabilizing, as per the world’s circumstances. What do you think about why are gas prices going up day by day, comment below.
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