Why It Could Be a Long Time Before Gas Prices Come Down

Gasoline prices hit $5 a gallon on average for the first time in U.S. history this week, and there’s little sign that relief is coming soon.

The pain can be felt at pumps across the country, but drivers in California are among the hardest hit. The average gallon of gas in the state has reached a whopping $6.43, according to the American Automobile Association. The national average price per gallon is $5.01, and the cost is above $5 in 21 states. As the war in Ukraine rages on and inflationary pressures reach new levels, lawmakers are scrambling to find a quick solution.
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On Wednesday, President Joe Biden called on major U.S. oil refiners to ramp up production of gasoline and diesel, slamming oil and gas refiners that he said had “tripled” their profit margins while American families face a crunch on prices. “The crunch that families are facing deserves immediate action,” Biden wrote in a letter to seven oil refiners. “Your companies need to work with my Administration to bring forward concrete, near-term solutions that address the crisis.”

But experts have warned there’s not much lawmakers can do to immediately curb inflation, warning that gas prices will likely continue to rise in the coming months.

Here’s what you need to know.

Why are gas prices still rising?

A number of factors have led to the current situation, including increased demand for gasoline, Russia’s invasion of Ukraine and supply chain disruptions induced by the pandemic.

As more Americans travel by car and commute to work this summer following COVID-19 lockdowns in recent years, oil companies have had to quickly ramp up production to meet growing demand. Many of these companies had shut down wells and laid off workers during the pandemic—a time when crude prices were so low that some traders were …read more

Source:: Time – Business

      

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