While the oil and gas industry might seem like something that is too complicated for you to understand, every time you visit a gas station and have to pay for fuel, you’re playing your own role in this industry. So although you might not know a lot about what’s going on in this field, when you see that you’re having to pay more and more for gas, it’s safe to say that there is something going on that you should be aware of.
To help you know why gas may become more expensive for you, here are three reasons you might see rising gas prices on the horizon.
More Demand At The Pump
Because people haven’t been able to travel much over the last year and a half, many are trying to make up for lost time and get out into the world as much as possible now that it’s safer to do so. But as a result of this, the higher demand for gas has also caused gas prices to rise.
While people begin able to pay these higher gas prices as part of their excitement to travel does have good indications that the economy is bouncing back after the slow it experienced last year, no one really likes to see higher prices when they’re filling up their gas tank, even if it does mean that people in general tend to be better off now than they were last year.
The Impact Of Hurricane Ida
At the end of August, Hurricane Ida came ripping through Louisiana, which produces and refines a lot of the gas provided to a portion of the country. But with the damage to these facilities, their product is going to be drastically cut down for weeks to come.
Since this has happened, other fuel producers are going to have to try to fill this hole, which will either mean shortages in gas or higher prices at the pump since there will be smaller supply to fill that higher demand.
Higher Prices For Crude Oil
There is a lot that goes into the price of crude oil, which is then refined to create the gas that you put in your vehicles. And although production of crude oil has increased around the globe, the prices for crude oil are still very high. And for you as a consumer, this means that gas prices will remain high when you’re filling up at the pump, too.
Whether you’re planning to take a road trip soon or have to drive a long way to work or school each day, you’ve likely noticed that gas prices haven’t dropped back down in a while. So to help you understand why, consider how the factors mentioned above may be causing fuel prices to rise so quickly.