We ask “Why are gas prices skyrocketing?”. The primary reason is of course Russia’s invasion of Ukraine, but there is more to it. Gas prices have reached the $4 a gallon price for the first time since 2008. Prices are expected to reach $5 per gallon.
Covid has caused fuel usage to go down but also led to workforce and production shortages. According to Robert McNally, president of consulting firm Rapidan Energy Group, “They can’t find people, and can’t find equipment. It’s not like they’re available at a premium price. They’re just not available.” US refineries are not at full production following last year’s hurricane damage and an explosion.
Improvements in the covid pandemic have led to more people returning to work and school as week as increased travel which in turn, have increased fuel demand and prices.