Drivers this Memorial Day weekend probably felt like they were emptying their wallets to fuel up their cars for a drive to their family barbecue. The average price of gas is the most expensive it has been on a Memorial Day since 2012. 

On Monday, the average price of a gallon of gas in the US reached about $4.62, according to the AAA. In New York, it was $4.93. In California, it was $6.17, the highest in the nation.

And experts say it’s only going to get worse. 

A Forbes Advisor poll found that the cost of travel is affecting the summer travel plans of 54% of those polled. 

Why are gas prices going up and up?

There are several reasons:

• The high demand for crude oil and low supply are pushing gas prices up. The Ukraine war, which started February 24, contributed to a shortage of crude oil. The oil industry exit from Russia resulted in millions of barrels of oil being removed from the market. Russia produces about 10% of the world’s oil supply but is now sanctioned. The US no longer imports Russian oil. 
• The COVID-19 pandemic had already caused a lag in oil supplies. Crude oil supply, which is the resource used to produce gas and diesel fuel, has decreased due to lower demand when fewer people were driving. Fewer people driving to work, few people vacationing, fewer students going to school – we’ve all experienced it. The average number of daily, non-work-related car trips taken by US car owners fell by 45% in April 2020 compared to April 2019, a AAA study last year found. Due to lower demand, the oil companies cut production. 
• The country’s biggest fuel pipeline, the Colonial Pipeline, was the target of a cyberattack in April, 2021. It was shut down for six days, which led to gas shortages and pushed the price up. In October, 2021, a pipeline that supplies the southeastern US was breached and suffered a spill. Repairs were hampered by the weather.

What might happen during the next few months?

• OPEC+ is expected to slightly increase its oil production. But the European embargo of Russian crude oil will cause prices to go even higher, according to the Wall Street Journal.
• The demand for oil has recovered to its pre-pandemic levels, but crude oil supply has recovered to about 97% of pre-COVID levels. Because many countries have cut off oil imports from Russia, prices will continue to go up.
• A federal law, set to start June 1, requires gas stations to switch to summer fuel, which is even more expensive.
• Summer travel boom will bring more demand. High demand/low supply equals higher prices.

What is the US doing about it?

• President Joe Biden is releasing one million barrels of oil per day from the nation’s strategic reserve supply.
• In March, 2022, the US and other world countries said they would release about 60 million barrels of oil.
• Even before the Russian oil embargo, gas prices were going haywire. The Democrats wrote a Senate bill in February that would eliminate the 18.4 cents per gallon federal tax on gas pump purchases. The bill hasn’t been brought for a vote due to political stagnation. 
• Some states are providing rebates, to lessen the effect of inflation on Americans. Ten states have already approved tax rebates. Some of the rebates have already been distributed, while others are in the planning stages and will go into effect soon. Details about requirements and the full programs can be found on each State’s website or other sources online. 
  • Colorado – $500 Rebate Payments
  • Delaware: $300 Relief Rebate Payments
  • Georgia: $250-$500 Rebate Payments
  • Hawaii: $100-300 Rebate Payments
  • Idaho: $75 Rebate Payments
  • Indiana: $125 Tax Refund
  • Maine: $850 Direct Relief Payments
  • New Jersey: One-Time $500 Rebate Checks
  • New Mexico: $500 Rebates
  • Minnesota: $750 Payment for Frontline Workers
  • Other states have pending programs for rebates and stimulus checks.
• In March, Democrats introduced the Gas Rebate Act of 2022, which would give eligible taxpayers $100/month and $100/dependent. The legislation is still in the planning stages and may also be found dead in Congress.

In the coming months, prices could go up to $5.00 per gallon or more on average for the country. Diesel fuel is already averaging $5.55 per gallon, which adds to inflation by raising the prices we pay for transporting freight.  

Crude oil production depends on the headlines of the day. Multiple factors, including the Ukraine war, the pandemic and other unpredictable occurrences could affect the price and supply of crude oil.Our lawmakers can provide relief, but the volatile political atmosphere in the US is a hindrance to legislation. 

Blame for rising gas prices, however, should not be placed on a political party, as many factors have brought us to this point.