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3 Major Reasons Why Gas Prices Are Going Up – 2022

The recent spike in gas prices has a number of causes.
This post will give you an in depth analysis into why gas prices are going up in the United States, are now the highest in almost 40 years. The spike began in February 2021, when gasoline prices were at an all-time high of $2.60 per gallon. But before then, prices were stable for 18 months. Despite the volatility in prices, the national average for a gallon of gasoline has remained relatively constant. The prices of gas also vary from state to state, with states along the Gulf Coast generally paying less for their gasoline. But prices in the West coast are typically higher.

The War In Ukraine

The first is the ongoing war in Ukraine, which is increasing the price of crude oil. Every $10 increase in the price of a barrel of crude oil adds about 25 cents to the price of a gallon of gas. In addition, the price of oil is affected by the value of the dollar, which has been increasing the price of gasoline in recent months. Ultimately, the rise in prices of gasoline is a result of these factors. The conflict has cut off oil shipments from Russia and Ukraine Causing Oil Barrel Prices to skyrocket, playing a major role in the reason why gas prices are going up in 2022.

Over the past week, the national average gas price reached $4.29, which is the highest since 2008. In the Los Angeles and Orange counties, average gas prices climbed about 13 cents to $5.154 and $5.133,

Gas Prices Rising Chart 2022

gas price chart 2022

Oil Prices Per Barrel

Oil Shortages Cause Price of Crude Oil to Sky Rocket

The most important reason why gas prices are going up in 2022 is the cost of crude oil. Crude oil accounts for 60 percent of the cost of a gallon of gasoline. A year ago, this cost was just over half that. By 2023, it will only account for 25 percent of the price of gasoline. While the COVID-19 pandemic has reduced air travel and slowed down commutes, the rising price of oil is the main culprit behind the spike.

Oil Prices for Today

Despite the ongoing global oil shortage, the Saudi Arabian government has remained defiant, saying the market remains relatively in balance. The kingdom has also resisted calls to increase its production and refining capacity, contributing to the pain consumers are feeling at the pump. OPEC’s oil ministers reportedly quadrupled the selling price of barrels in December

AAA’s daily readings of gas prices indicate that the national average is close to $5 a gallon. AAA reported on Thursday that the national average for regular gasoline is up a quarter from a year ago and more than $1.90 higher than the record high set in 2008.

Inflation After Covid

A recent study by the Federal Reserve Bank of San Francisco found that a pandemic relief package contributed to 3 percentage points of US inflation between 2010 and 2021. This explanation explains why US inflation is outpacing the rest of the world.

During a recession, inflation rates tend to be low. This was the case during the Great Recession and Great Depression. During a recession, total demand for goods and services decreases, lowering the price level. When an economy recovers strongly, the rate of inflation usually goes up. But that’s not the case now. Despite the rising CPI, there are still signs of an inflationary period in the US.

The CPI is a good measure of consumer price increases, but determining the exact rate of inflation is difficult. Inflation rates are best calculated by using data from several sources. You can do an in-depth calculation of the buying power of your money in a year, month, or year’s time with an inflation calculator. The CPI has its own Inflation Calculator you can Use on its website.

Where to Find Cheap Gas – 2022

Sams Club Gas Prices

Sam’s Club has some of the highest gas prices around. Depending on the state you live in, you may be able to find lower prices here than at nearby gas stations. Sam’s Club gas prices vary depending on the day of the week, so be sure to check before you make a trip. For a great deal at the pump, download the GasBuddy app and compare prices at Sam’s Club with nearby gas stations.

A Money Saving Tip for Sam’s club gas prices that can save you money is its credit card. Which earns rewards when used to fill your vehicle. You’ll get up to 5% back on fuel purchases if you use it at Sam’s Club. This is great for those who want to earn more rewards on the road. If you’re looking for an even better deal, you should sign up for the Sam’s Club credit card and receive cashbacks on your purchases. You’ll also get up to 5% back on your purchases.

How to Find the Best Gas Prices at Costco

Do you know how to find the best gas prices at Costco? You can visit their website and find out by simply clicking on the gas pump icon. You can also check the price of gas at a specific warehouse. However, keep in mind that the price will vary by location. The following are some things you should know before visiting Costco.

The Price of Gas at Costco

The price of gasoline at Costco is approximately $0.25 lower than the market average.

Costco members card

The store sells both regular and premium gas, and even diesel. Because Costco collects membership fees from its customers, they can afford to keep the price of gasoline low. As a result, they can afford to pass these savings along to you at the pump.

You’ll Also Get Benefits from Purchasing Gas At Costco. One such benefit is gas delivery and membership discounts. Members can use their discounted gas card to make additional purchases, while non-members can use their membership card to pay for gas. Those benefits, along with a low price for gas, are sure to encourage you to sign up for Costco membership.

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