Prices at the gas pump are rising yet again, today’s national average gas price is $4.59. As we head into the summer months, the demand jumps — and prices are going to continue to jump up as well.
We are hearing threats of $6 per gallon gasoline. More shocking: the state of Washington is bracing for $10/gallon gas. This is absurd!
Prices across the country were already high before the most recent jumps. Gas prices are above $6 in California, and in every state of the union, gas costs more than $4 a gallon. Before the end of May, gas prices are projected to be at or above $4.75 a gallon.
President Biden’s decision has dealt a blow to potential domestic fuel protection and has directly caused gas prices to reach new highs across the country.
Even right now at this writing, gas costs 51 cents more per gallon than a month ago, when prices stood at $4.08. Much of the most recent jump has come just in the past few days, as prices rose 16 cents per gallon between May 9 and May 16. Diesel prices are twice what they were last year. Even for those with an eco-friendly electric vehicle (EV), electricity prices are up 11.1%.
What is the future pricing of gas, diesel and electric prices?
Gasoline inventories are dropping as we reach Memorial Day. Because diesel is it at an all-time high, prices of any and every type of food that is delivered to a store will cost more, too. High gas prices impact planes, trucks, tractors — almost all vehicles. You can factor these added costs into today’s 8.3% inflation, which remains at very high levels not seen for a full 40 years.
Some accuse gas stations and oil drillers of price gouging. No, it’s not. All costs have increased, and, as any consumer can see, those costs are passed on to you. Electric cars obviously are not the answer, with electric prices up double-digits, at 11.1%.
There are a lot of factors for the increased gas and diesel prices. One, and not least, of which is the Biden administration cancelling oil and gas lease sales in the Gulf of Mexico and Alaska’s Cook Inlet.
President Biden’s decision has dealt a blow to potential domestic fuel protection and has directly caused gas prices to reach new highs across the country. The Biden administration has said that the Cook Inlet lease sale would not move forward because of a “lack of industry interest in leasing in the area” because of high costs. This is not true.
In the Gulf of Mexico, the Federal Energy Regulatory Commission canceled two lease sales, citing “conflicting court rulings that impacted work on these proposed sales.”
Besides bad timing on these two sites, President Biden imposed a moratorium on the sale of new leases one week after his inauguration, but the order was later blocked by a Louisiana federal judge who granted a preliminary injunction to 13 states that claimed they would suffer “irreparable injury” from the White House move.
To add more injury to the U.S. oil and gas industry, last month, the Interior Department announced it was restarting the sale of oil and gas leases on federal land—
but reduced the amount of land under consideration by 80% and increased the amount of royalties energy companies would have to pay the government if they extracted anything of value. Then the government added 11 new regulations and fees, making it even more expensive to drill on existing leases.
It is important to note that there are 10.9 million acres of offshore federal waters already under lease to the industry. The industry is not producing on more than three-quarters of these acres, or 75.75% of 8.26 million acres. There must be a reason why, but the Biden administration has not disclosed it.
The Russian invasion of Ukraine hit oil markets on a global basis and has hit gas and fuel prices hard globally. Before the war broke out on Feb. 24, 2022, we had already slowed drilling in the U.S., which was already driving up the price at the pump. Now, with governments turned away energy supplies from Moscow, the problem of obtaining enough oil and gas to fuel American businesses and homes at reasonable prices is only exacerbated.
Additionally, refineries are running at full speed and full capacity, but we have lost 5% of our refining capacity; this is due to additional costs and aged equipment.
We are now asking Venezuela to send us their oil. This would then make us reliant on another dictator, besides Russia President Vladimir Putin: Nicolas Madero, president of Venezuela. We are also buying oil from the Organization of Petroleum Exporting Countries (OPEC) as we have in the past, but they are not increasing production no matter how much we ask for more.
The Bottom Line
Solutions include opening up leasing and permits for drilling again here in the USA, finishing and firing up the keystone pipeline and using Canadian oil instead of dirty Venezuelan oil. Canada has been offering to sell oil to us, but for some reason we keep turning them down. They are our neighbors to the north. Venezuela is our enemy. And Canada has offered Canadian oil to lower gas prices and it’s cleaner.
We are in line for a prolonged period of higher energy and gas prices. More restrictions, regulations and taxes are not helping the situation. Let’s work with our neighbors to the north and become energy independent to lower costs for everyone.
There is so much more to discuss on this. Send you comments to Car Coach Reports. I am available on all major social media channels as: @lauren fix. Let's start the conversation!
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Lauren Fix, The Car Coach®, is a nationally recognized automotive expert, media guest, journalist, author, keynote speaker and television host. A trusted car expert, Lauren provides an insider’s perspective on a wide range of automotive topics and safety issues for both the auto industry and consumers. Her analysis is honest and straightforward.
Lauren is the National Automotive Correspondent for Newsmax TV, a conservative news net carried in 23 countries and in over 35 million U.S. cable/satellite homes. She is also The Weather Channel and Inside Edition’s auto expert. Lauren Fix serves as a juror for the esteemed North American Car & Truck of the Year Awards (NACTOY).
Lauren is The Car Coach columnist for Parade Magazine and eBay Motors and writes a weekly column. She also appears weekly on USA Radio’s DayBreak USA.
Lauren is the president and founder of Automotive Aspects, Inc., a consulting firm with a wide range of multi-media services, including media consulting, broadcast messaging strategy, public relations and television production.
Lauren is the author of three books: most recently, Lauren Fix’s Guide To Loving Your Car with St. Martins Press, Driving Ambitions: A Complete Guide to Amateur Auto Racing, and The Performance Tire and Wheel Handbook.
Lauren’s broadcast experience includes Oprah, Live! With Regis and Kelly, The View, TODAY, 20/20, The Early Show, CNN, FOX News, FOX Business, MSNBC, HLN, TBS Makeover and a Movie, Inside Edition, ESPN, TBS, Discovery, Speed and NPR, to name a few. Lauren previously hosted four seasons of Talk 2 DIY Automotive on the Do-It-Yourself Network (DIY), was the National Automotive Correspondent for Time Warner Cable and hosted Female Driven on Lifetime TV.
Lauren’s articles and advice have appeared in USA Today, Good Housekeeping, Redbook, eBay, Woman’s World, Esquire, First for Women, InTouch and Self. She has also contributed content to Motor Trend, Truck Trend, Hot Rod, Car Craft and many other automotive publications.
Lauren is a member of the Society of Automotive Engineers (SAE), the Society of Automotive Analysts (SAA) and is an ASE (Automotive Service Excellence) certified technician. She inherited her love of all things automotive from her father, who owned a brake remanufacturing business and worked for many U.S. manufacturers. Lauren has been fixing, restoring and racing cars since the age of ten. She has been advising drivers almost all her life.
In addition to being a leader in positive consumer awareness and the automotive industry, Lauren is often asked to speak to groups around the world about her success in marketing, motivation, entrepreneurship, parenting and other lifestyle topics.
Lauren was named the 2015 WIN Award, 2013 SEMA Business Network “Mentor of The Year”; SEMA Business Network 2012 Woman of the Year; and awarded various Car Care Council “Automotive Communications Awards” in 2012, 2013 and 2014. Past awards include 2008 Automotive Woman Of The Year and 2010 Woman of Distinction – Entrepreneur winner. Lauren Fix was inducted into the National Women and Transportation Hall of Fame in 2009 – a very high honor for a hard working automotive professional.
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