Gas prices spike: Middle eastern oil scare is going to boost how much Americans pay for gas
There’s been a pattern of gas prices recently, as they’ve begun to increase at a steady rate over the past couple of weeks. Two weeks ago, gas prices were at an average of $2.55 per gallon, then $2.61 this past week, and now $2.69 for this week, according to AAA Gas Prices. This trend will continue, so try and enjoy gas prices now.
But why is this happening? Well, there is a large oil field in Saudi Arabia that supplies large amounts of oil to countries across the world, and it was bombed---destroying at least a third of it. The strike knocked about 5.7 million barrels of oil completely out of production, with no real timetable for repair, according to Communities Digital News.
“The Saudi national oil company, known as Aramco, has determined that its facilities were hit by missiles, people familiar with the matter said. A U.S. government assessment determined that up to 15 structures at Abqaiq suffered damage,” according to Communities Digital News.
Oil is always in high demand because it’s a limited, natural resource that has so many purposes but mainly to produce gas for cars.
Economics teacher Kevin Haynes explained how oil is used for more than just gas, which can impact many American businesses as well. He said this crisis will create higher costs for a business when buying oil, forcing it to produce less of their product, thus creating higher costs for their consumers, and, in turn, will hurt the economy.
However gas prices are what people usually think of when on the subject of oil. California, for example, is often one of the top states with the highest average gas price, at around $3.80. But, over the past few weeks it has risen over $4 per gallon, according to Automotive News.
“Just getting my license last year was exciting, but having to pay for gas is honestly the worst part about having a car. I spend so much money on gas, I try not to drive as much as I first did when I got my license,” senior Jack Kossudji said.
From 2008 to 2012, gas prices ranged between $3.50 and $4.10 per gallon. But, in 2016 gas prices dipped to under $2.00 to where it is now at about $2.75 on average, according to Communities Digital News. That average though, “could increase for weeks, or even months.''
“We put a lot of it in our tanks each year, with American drivers on average using 656 gallons per person. That equates to roughly 55 gallons a month per person in the United States,” according to Automotive News.
Back in 2012, people spent more than $2,000 a year just to fill up their tanks. By the end of this year, Americans are projected to spend around $1,800 per person, which is much higher than what people paid for in 2016 at $1,400. But, for some people, gas is just too expensive and unaffordable to where they’re unable to get gas regularly, writes The Huffington Post.
“It directly impacts my wallet in terms of gas. However, my larger concern is how it could impact the entire economy because an event like this slows economic growth,” Haynes said.
Teens might want to start saving some money because the next time that tank needs filled up, it’ll be more money than the time before.