What is the reason for high gas prices and why they are not going.

Record-high gas prices are the biggest reason for the rising demand for the summer months – and there is no sign of easing in the factors behind the elimination of wallet costs.

Crude oil prices, which have risen above ڈالر 100 a barrel, now account for 60 percent of the price of a gallon of regular unleaded gasoline, according to federal data for April. Energy Information Administration.

COVID-19 Crude oil prices rose amid growing demand due to the eradication of the epidemic and the Russian invasion of Ukraine and the consequent disruption of the global supply chain by Western sanctions.

Just over a year ago, crude oil prices accounted for 52% of the cost of a gallon of gas – and only 25% of the cost during the April 2020 COVID lockdown. New York Times Reported

EIA figures show that as of this April, refining costs a further 17% of the cost per gallon, while 12% of the cost goes to taxes and 11% to distribution and marketing.

The nationwide average price of a gallon of regular lead is now over $ 5. According to the AAA, on Wednesday, the national average for regular unleaded reached $ 5.014, just below the all-time high of $ 5.016 a day earlier.

The price of crude oil has risen to more than 100 100 a barrel.
New York Post
Monthly average for regular gas
This chart shows the monthly average of regular gas since 1980.
New York Post
Oil imports production V2 1
The United States is the world’s second-largest oil importer, despite being the world’s largest oil producer.

That’s $ 2 more than the average cost of $ 3,076 per gallon at the moment last year – and 50 cents higher than the average price of a gallon a month ago, AAA data shows.

The national average for a gallon of diesel fuel set a new record of 7 5.78 on Wednesday, according to AAA.

Controversy over uncontrolled energy spending and uncontrolled inflation has led President Biden and congressional Democrats to fear a backlash from angry voters in the November midterm elections.

Drivers put petrol in cars.
The average price of a gallon of regular in lead is over $ 5 nationwide.
AFP by Getty Images / Patrick T. Fallon

But despite the president’s demand on Wednesday that Big Oil increase production, there is no evidence that such an effort would reduce pump prices.

Although the United States is the world’s largest oil producer, it is also the world’s second-largest oil importer – and according to the Times, many gasoline-producing refineries process products produced on American soil. Not ready to

The United States saw its refining capacity peak to about 19 million barrels per day in April 2020, before demand declined due to the effects of COVID and lockdown. As a result, oil companies cut staff and shut down refineries.

Today, according to Reuters, US refineries are operating at 94% capacity, but production in March was 17.9 barrels per day, lower than the level before the epidemic.

Oil companies are believed to be reluctant to reopen closed refineries due to labor shortages as well as long-term expectations that an increase in supply will lead to lower crude oil prices.

Post with wires