Why are gas prices going up again in the US in the summer of 2023?
Gas prices have remained stable for the past few months in the US, but now in the middle of summer they’ve gone up again. Why are pump prices on the rise?
The US has had a run of stable pump prices the past few months, but now that we are in the middle of summer, they’re on the rise again.
Gas prices can go up for a variety of reasons, and they can be subject to rapid and sometimes unpredictable changes. In the past month, they have climbed up almost 30 cents higher to an average $3.83 per gallon throughout the country, according to AAA.
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Why are gas prices going up again in the US in the summer of 2023?
As far as this summer’s fluctuations are concerned, there are several culprits responsible for the increase.
Seasonal demand
This one is not a surprise. Gasoline prices often rise during peak driving seasons such as summer, when more people are going on road trips and traveling. Demand for gasoline thus increases substantially.
Oil price increases
The price of crude oil has gone up from approximately $70 per barrel a month ago, to its recent tag of $80 per barrel. Prices are going up partly because Russia, the third-largest oil-producing country in the world, has decided to slash production beginning in August.
Decreased supply
Speaking of cuts in production, Saudi Arabia, the world’s second-biggest producer of oil, also announced they were lessening their oil exports last month, in an attempt to keep prices elevated. The country said they would continue with reduced production until the end of next month.
Supply disruption caused by extreme heat
Any disruptions in the supply of crude oil or gasoline can lead to higher prices. This can include events such as natural disasters like hurricanes that disrupt oil production and refining, and geopolitical tensions such as the war in Ukraine.
This summer, however, extreme weather takes part of the blame. Because of intense heat waves that have been scorching much of the US, some fuel-producing plants in Texas and Louisiana have suffered unexpected refinery outages, or have been forced to reduce their output.