2022 has already been a crazy year, and we’re not even halfway through it! One topic among many in local newspapers lately is the increase in gas prices across not only the United States but also globally.
It doesn’t seem to matter where you live. Gas prices are just continuing to go up, and nobody likes that. Missourians are no different. The higher the number at the pump, the lighter our wallets get and the more frustrated we become.
What’s causing this increase? And how long is it going to last? Have we even seen the worst of it? Keep reading to find out.
THE AVERAGE GAS PRICES IN MISSOURI
According to AAA, the current average cost of fuel in Missouri is as follows:
- Regular – $3.849
- Mid-grade – $4.105
- Premium – $4.386
- Diesel – $5.168
To put these prices into perspective, the average Missouri gas prices a year ago were:
- Regular – $2.677
- Mid-grade – $2.923
- Premium – $3.196
- Diesel – $2.913
You can see why some people may be frustrated, but is there anything we can do about it?
PRICE INCREASES FOR CRUDE OIL
The price of crude oil accounts for about 60% of the price at the pumps. Currently, the fear of a global energy supply disruption due to Russia’s invasion of Ukraine outweighs the demand concerns triggered by the impact of COVID-19 on China’s economy.
Global tensions mean that the price of crude oil will continue to linger around $100 per barrel, if not increase.
As the third-largest oil supplier globally, Russia accounts for 11% of oil’s global production. That may seem like just a drop in the bucket, but by now, you’ve probably realized how the loss of that oil supply is affecting global and local markets.
If the supply of crude oil remains limited, it will be near impossible to get prices to drop. In turn, you can expect to be paying more at the pump. It now costs Americans an average of $23 extra to fill up their tank from a year ago.
WHAT DOES THIS MEAN FOR ST. LOUIS DIVERS?
While it’s true that the average price of gas has increased across Missouri, the state continues to remain one of the cheaper locations to buy gas. However, out of all metropolitan areas in Missouri, St. Louis remains the most expensive place to fill up, with residents paying an average of $3.99 per gallon.
If you live in St. Louis County, you can use GasBuddy’s map of the top ten cheapest places to find gas.
OTHER REASONS FOR RISING GAS PRICES
Along with crude oil prices remaining high, with more people vaccinated than ever, most of us feel free to start traveling again.
Naturally, gas prices increase every spring and summer for a couple of reasons:
- Increased travel – more people travel in the spring and summer for vacations. Gas prices increase to match the demand for gasoline as more people hit the road. Now that most U.S. citizens are vaccinated, companies expect more people to take time off to get away for a bit than we have in the past couple of years.
- Summer-blend gasoline – Every summer, gasoline suppliers switch out the winter-blend gasoline for the summer-blend gasoline. The summer-blend gasoline happens to be more expensive due to the additives necessary to meet environmental regulations.
HOME SERVICE OIL
Are you in need of a bulk fuel supplier? Or perhaps you’re in the market for a distributor of oils, antifreeze, filters, equipment, chemicals, and convenience store supplies. Whatever the case may be, Home Service Oil is here to help. Contact us today for more information about what we have to offer or request a service.