“Staycations” – vacations at home or nearby home – were a huge hit last year as the world was grappling with the COVID-19 pandemic. This summer, Americans are anxious to get away, but with air and rail travel still experiencing restrictions, many vacationers are opting for the good ole’ family road trip.
Last year at this time, the national average for one gallon of regular gasoline was $2.20. Just this week, the national average had jumped to $3.16 per gallon. Analysts say that prices at the pump are likely to stay above $3.00 per gallon through the summer.
Consumers may be asking themselves “why am I paying so much at the pump this summer?” Here are the main components of the retail prices of a gallon of gasoline:
- Cost of crude oil
- Refining costs
- Distribution and marketing costs
- Local, state, and federal taxes
It boils down to the simple rule of supply and demand. In order for gas prices to decrease, there has to be an increase in supply. The United States is the world’s top producer of natural gas and oil, which as kept energy more affordable for communities, especially minority communities, as compared to countries around the globe.
The Community Energy Center encourages our leaders in Washington, D.C. and across the nation to support efforts to improve our country’s energy infrastructure system, create jobs, and help the economy recover after the unprecedented pandemic.
The CEC supports policies that provide affordable energy for all Americans. With increased production comes decreased prices at the pump. Consumers (and their pocketbooks) deserve a break.
Read more details here.