Rising gasoline prices have returned in force, with recent weeks seeing a considerable increase in fuel inflation. If present trends continue, particularly concerns over Russia’s invasion of Ukraine, the agony at the pump may get much worse before it improves.
According to AAA, gasoline sold for roughly $4.07 per gallon nationwide on Monday, and $4.13 per gallon in Arizona. According to AAA, this is the highest recorded average price in the state’s history.
Over the last year, the national average price has risen by $1.30 a gallon, and by a stunning 45 cents in the last week.
Here’s what you can do to aid your wallet and what you should know about the situation:
How to use GasBuddy, Waze, and Google Maps to locate inexpensive gas
It’s worthwhile to shop around, particularly if you can do it without having to go all over town.
Gasbuddy.com is a useful online resource that displays local prices online or through an app. Another resource is Geico.com, which has a search for “local gas costs.” Whether or whether you are a client of the insurance, you may take use of this service.
Other useful websites are Google Maps (for nearby gas searches) and Waze.com (for carpooling advice). There’s also Mapquest, which has a fuel symbol that you can hit to view local costs.
Saving money on petrol may be done in a variety of ways.
To enhance fuel efficiency, drivers may use a variety of mechanical and behavioral strategies. These include maintaining adequate tire inflation and changing filthy air filters, as well as driving slowly on highways, utilizing cruise control if available, and gently accelerating and braking.
It’s also a good idea to remove any additional goods from a vehicle, make sure the gas cap is tight, and avoid idling as much as possible.
Other options include combining journeys, carpooling, and potentially parking your car for short excursions that you might do by bike, bus, or walking instead.
Why are gas prices expected to rise in 2022?
The price increase is due to a combination of high demand and limited supply, as well as concerns about supply interruptions as a result of Russia’s invasion of Ukraine.
The economy has been firing on all cylinders recently, as seen by a healthy 7% increase in U.S. GDP in the fourth quarter of last year, and near-full employment in several areas, including metro Phoenix. Following the pandemic lockdowns of the previous two years, people are going out and about more, filling commercial planes and taking more road trips.
According to the federal Energy Information Administration, domestic crude oil prices have risen over $52 a barrel in the previous year, to a recent high of $116. A staggering $24 a barrel has risen in the last week or two, suggesting concerns about Russian import restrictions or supply disruptions.
The EIA also said that middlemen, like as refineries, have raised their profit margins.
Has the production of the producers increased?
They have, but pumping crude oil, sending it to refineries, refining it, and then distributing it to gas stations takes time. In February 2021, the United States was generating as low as 9.8 million barrels of oil per day. In late 2021, that figure had climbed to roughly 11.6 million barrels per day, and the EIA estimates that domestic production would set a new high of 12.4 million barrels per day in 2023.
Are they the highest gas prices ever, or will they continue to rise?
At least over the next several weeks or months, it’s quite likely. The recent jumps in crude-oil prices have yet to be completely reflected in gasoline prices, and the busy summer driving season is still ahead of us.
However, economic growth is expected to slow this year, and a rapid conclusion to Russia-Ukraine hostilities would be beneficial. In a recent projection, the EIA predicted that petroleum prices will decline in the second half of 2022.
What is the relationship between gas and diesel prices and oil prices?
Crude oil accounts for more than half of the average gas price.
A gallon of ordinary gasoline cost $3.41 on average in January, with crude-oil expenses accounting for 56% of that. Distribution and marketing costs accounted for 16 percent of total costs, refining 14 percent, and taxes 15 percent. According to the EIA, refining costs increased slightly for diesel, but crude oil costs decreased somewhat.
According to the EIA, refiners generally create 19 to 20 gallons of gasoline and 11 to 12 gallons of fuel oil from a 42-gallon barrel of crude oil.
Apart from Russia, where does the world obtain its oil?
Apart from the United States, which is the world’s largest oil producer, accounting for 20% of global supplies, many other countries produce oil, including Saudi Arabia, other Persian Gulf states, Canada, China, Iraq, and, of course, Russia, which is the world’s third largest oil producer after the United States and Saudi Arabia. The United States is also the largest crude-oil user, accounting for 20% of global consumption, followed by China, India, Japan, and Russia.
Is there any oil produced in Arizona?
Yes, but as of November, it was much under 1,000 barrels per day, according to the EIA, a drop in the bucket. Texas produced 5 million barrels in that month, followed by New Mexico (1.43 million), North Dakota (1.15 million), Alaska (446,000 barrels), and Colorado (446,000 barrels) (404,000 barrels).
Oklahoma, California, and Wyoming are other high-production states. New Mexico, California, Colorado, and Utah are four of the top ten states bordering Arizona.
How many oil refineries are there in the United States?
According to the EIA, the United States has roughly 125 active oil refineries last year, with those in Texas and Louisiana leading the list of biggest facilities. The biggest refinery west of Texas is located in Carson, California, a suburb of Los Angeles. According to this statistic from 2021, Arizona has no refineries.