There is much debate about who is responsible for the high gasoline prices.
Republicans blame the Biden administration, while Democrats say oil companies are exaggerating prices. The root of the problem is more complex, Severin Borenstein, an analyst at the Berkeley Energy Research Institute, told CBS News.
“Most of the increase is due to rising oil prices,” he said, “because global demand is recovering very strongly after the pandemic and supply is not keeping up.” “BeforeWe were seeing delays in the production of oil. Producers in the United States are reporting difficulties getting workers back to their fields. There are supply chain issues with parts and equipment.”
Oil companies are benefiting from the surge in pump prices. In the first three months of this year, Chevron’s profits increased by 33% in the last three months of 2021. Shell’s profits soared 42%, while Conoco Philips’s jumped 43% and British Petroleum’s profits surged 51%.
“Oil companies make a lot of money from cruise ships,” Borenstein said. “They’re selling the oil at market prices.”
The current national average for a gallon of gasoline is $4.59, an all-time high. According to AAA.
High gasoline costs have caused people to reconsider their summer travel plans and reduce their vehicle use. It could take some time for gas prices to fall, as experts predict gas prices could take a hit, Borenstein said..
“I think the reality is that we will definitely see higher gasoline prices all summer and perhaps by the end of this year, perhaps gradually lower. But we won’t see gasoline prices of $2 or $3 in the near future, either,” Bo said. said Renstein.