regrettably for drivers , we often see the highest gas price during the summer , starting around Memorial Day . In May 2022 , U.S. consumers paid an norm of $ 1.50 per gallon more than they were at the same time in 2021 , grant toAAA .
Why is gas so expensive ? The reasons are many and varied , but two causes were soaringinflationand the fact that many countries , include the United States , cut off fossil oil imports from Russia — one of the world ’s top oil colour producers — due to the war in Ukraine .
This volatility has shaken up the primitive oil markets and continues to push Price higher .
Crude Oil Prices
concord to the U.S. Department of Energy ( DOE ) , most ( 54 pct ) of the you cost of gas at your local gas station can be assign tocrude oilprices .
Economic Growth
The U.S. Energy Information Administration ( EIA)listseconomic increase as one of the independent divisor impacting crude oil supplies ( and cost ) . As economies grow , they require increased transportation , which in turn requires more fuel and higher demand for oil color .
For model , the U.S. is one of the large economy in the world . Despite being theworld ’s gravid producer of vegetable oil , it is still a last importer of crude oil . Put simply , it accept a lot of fuel to go a boastful economy , and as countries race to increase their GDP , need increases and accelerator prices rise for everyone .
OPEC
One international mathematical group that tend to have a major impact on crude oil prices is the Organization of the Petroleum Exporting Countries ( OPEC).OPEC ’s 12 member res publica include some of the world ’s largestoil reserves .
Together , Algeria , Congo , Equatorial Guinea , Gabon , Iran , Iraq , Kuwait , Libya , Nigeria , Saudi Arabia , United Arab Emirates and Venezuela control about 72 percent of the world ’s fossil oil reserves , perEIA .
OPEC sets oil output targets for its member state , and if the targets are humbled , that can lead to higher oil cost worldwide .
Geopolitical Events
Geopolitical conflict and political change can have a major encroachment on gasoline prices .
Extreme Weather
According to the DOE , most of the refineries in the U.S. are located along the Gulf Coast . This region is specially vulnerable tohurricanes . hurricane on the Gulf Coast can check refining , which leads to higher accelerator prices .
Extreme weather in other parts of the country can also cause high gas prices . For example , snow can increase demand as more multitude heat their homes ; meanwhile , Baron Snow of Leicester can cause route closures and oil colour transit delays .
Taxes
Local taxation describe for about 16 percent of the total cost of gasoline , grant to theDOE . The home average is 57 cents per gallon , but it varies wide by state .
California taxes gas pedal higher than any other State Department , at about 87 cents per gal .
Distribution, Marketing and Refining Costs
TheDOEestimates that refinement price and refinery profits describe for about 14 per centum of the monetary value of gas , while statistical distribution and selling account for 16 percent . That means that about 1/3 of the retail price of gas is influence by factors like transport costs and refinery military operation .
Time of Year
Fuel prices typically increase every summer , and some of the reasonableness are fairly logical .
More people traveling , specially on family vacations and road trip , increases demand . Also , in the fountain months , energy company conduct maintenance on theirrefineries , shutting them down and limiting electrical capacity until late May .
Because of these disruptions , oil supply can become stretched . In addition , born disasters ( like hurricane ) can increase prices by disrupting transport routes and prejudicious refinery and other infrastructure .
Seasonal Gasoline Transition
But did you hump that thegasolinesold during the summertime is actually different — and more expensive to farm — than that sold in the wintertime ?
Twice every yr in the United States , the fuel supply changes . It ’s known as the seasonal gasoline conversion ( yes , winter natural gas vs. summer gasis a real thing ) . This change is the biggest reason for the price raise in summer gasolene . depend on the time of twelvemonth , gasolene stations switch between providing summertime - score fuel and wintertime - grade fuel .
The switch started in 1995 as part of the Reformulated Gasoline Program ( RFG ) , which was found through the 1990 Clean Air Act Amendments . The Environmental Protection Agency ( EPA ) started the RFG program in parliamentary procedure to reduce pollution and smog during the summerozone season .
so as to reduce pollution , summer - blend fuels expend different oxygenates , or fuel additives . These blends , the EPA says , burn cleaner and also help compensate for a limited fossil oil supply .
This practice of using seasonal blending also further the ontogeny of alternative fuel . Remember that gasoline is n’t just made up of processed crude oil ; it ’s a blend of processed crude oil and different compounds and additives .
Summer vs. Winter Gas
So what ’s the difference between summertime - grad and wintertime - form fuel ?
summertime - grade fuel burns clean than winter - score fuel . This just means that it produces less smogginess and expel lesstoxic air pollutant . Winter - grade fuel has higher Reid Vapor Pressure ( RVP ) , which means it can vaporize at down in the mouth temperatures — a must for dwell in a dusty climate .
The actual deviation in price of output varies and it can add between 5 and 15 cents per congius to the cost of your filling - up , consort toGas Buddy .
No matter the difference in yield cost , the step-up at the heart is even great , owing to the summer driving season , dips in supply , maintenance costs and companies ' convert to output of summer blend .
