High Gas Prices: A growing threat

NY Times

Feb 8, 2022

The cost of the gas can be felt with a steep rise in the prices of goods and services, which in turn are affecting the consumers and the economy

The most important energy commodities in the world are Crude oil and Natural gas. The increase in gas prices in recent times is reported to be the highest since 2014. According to the AAA, for a gallon of gas, the national average is $3.41, which is $1.29 more than a year ago. Gasoline continues to remain 7 cents per gallon even with a plunge in crude oil. The demand plummeted during the pandemic, hence its production was cut down by the Organization of Petroleum Exporting and oil-producing nations. This also led to a decline in drilling in the U.S. as the oil rig count fell by 70% in the summer of 2020.

The reason for the surge in gas price is the alteration in demand and supply. The cost of the gas can be felt with a steep rise in the prices of goods and services. It is also seen in those areas where a gallon has reached its highest up to $7.59. With this increase, many are cutting down and planning ahead for their spending budget and trying to save by spending less on travel.

NYTimes says Energy analysts point out that gas prices have been higher in the past; in 2008, the national average rose above $4.10 per gallon. (Adjusted for inflation, that would be equivalent to $5.16 today.) They’re optimistic that the increase in travel and gas demand is a reflection of the economy’s rebound from the pandemic, though they worry that rising prices could make people cut back on other spending. We can see the implication of the surge in gas prices. Consumers made a shift to smaller fuel-efficient cars. Overall gas prices can change people’s pattern of living and travel and in the long run will get harder to sustain.The option of moving to electric cars is beneficial, better for the environment, our health, and cheaper to run.

Force can improve energy efficiency at the charging stations to expand the lifespan of the charging machines and also help in reducing electricity consumption. To know more visit www.enposs.com