Why are gasoline prices continuing to rise?
If you’ve been careful when you stop at the pumps, you know gasoline prices have been on the rise lately. But why?
Silver expert Clark Howard says there are three reasons you’re paying more to refuel your car these days. And he has a prediction of when gas prices will start to fall.
3 reasons why gas prices are rising
Let’s see why gasoline prices are skyrocketing.
1. People drive more
Millions of Americans who spent most of the last year at home are now back on the road.
57% of people who responded to a recent Cars.com survey say they are planning a road trip this spring. This is an increase from 32%. 100 last year.
Demand for gasoline is picking up, as storms in Texas have tightened supply. It depends AAA, which cites a 14% increase in gasoline prices between February and March.
2. Exploration and drilling declined dramatically during the COVID-19 pandemic
Faced with an oversupply of crude oil due to the effects of the pandemic, Clark says major producers âhave stopped production and exploration. This has not happened just in the United States, but elsewhere. Clark said.
But things are now going the other way. âWe’re going to generate a lot more oil every week,â he says. “It has already started and we will continue to do so.”
3. OPEC manipulates the market
OPEC “is manipulating supplies right now to try to drive up prices,” says Clark.
This claim is supported by the US Energy Information Administration, who says that the member countries of the oil cartel and its partners have recently produced less crude oil, which has resulted in soaring prices.
OPEC met at the beginning of March and has more meetings scheduled soon so that further adjustments may be forthcoming.
When will gasoline prices go down?
Here’s the good news for your wallet: Clark doesn’t expect gas prices to stay high for long, so your pain at the pump should be temporary.
âPain you can measure in months rather than a likely long-term upward price trend,â he says.
Here is Clark’s outlook on gasoline prices in the near term:
âWe’re going to have pain at the pump for several months. And then at some point in the summer, historically, July 4th is when prices go up and start to come down. “
In the meantime, here’s what you can do to save money on gasoline:
How to save at the pump now
Join a gas station rewards program
Have you ever thought about joining a gas station rewards program? You can get discounts at the pump as well as perks like cash back and points for purchasing other products.
These gas station rewards programs can save you money.
Use gas saving apps
I also use GetUpside and Waze to help me map the most efficient routes. It saves me gasoline as I drive fewer kilometers.
Want to know more? Read Team Clark’s GetUpSide review.
Avoid premium gas
If your car manual tells you to use premium fuel, that’s one thing, but if it isn’t necessary, you may be wasting money.
To hear Clark’s full take on this topic, listen to the segment:
More gas saving resources from Clark.com: