Home Service Oil Company
Home Service Oil Company

Why Gas Prices Are on the Rise

October 13, 2022

Gas prices across the US decreased each day from June 14 to September 20. Now, gas prices are on the rise again. By reading this article, you’ll learn about this three-month gap, why the cost is going up, and how inflation is affected.

Before: High Inflation Despite Lower Gas Prices

Lower gas prices slowed inflation those past 98 days. At the same time, the cost of other items continued to rise, making inflation still a burden for American households. Grocery bills, rent, and utility costs, among other expenses, were still high, despite low unemployment and strong job growth.

Now: Closed Refineries Are Rising Gas Prices

US gas prices rose by a penny to $3.68 a gallon on September 21. Gas prices have continued to increase, and the price as of October 5 was $3.83 a gallon.

Normally, by the end of the summer driving season, the lessened demand for driving pushes the price of gas downward. Yet, many US refineries are shut down for maintenance work. In fact, that’s nearly 18% of the nation's refining capacity.

Also: OPEC+ Reduced Oil Production

OPEC+ announced on October 5 they would slash oil production by 2 million barrels a day. In September, prices fell to $90 a barrel. So, there’s a perception that, by cutting production, Saudi Arabians are trying to push prices back up to $100 a barrel or more.

Rely on Home Service Oil

You may be wondering what you can do and who you can rely on. While the gas industry continues to change, Home Service Oil remains a dependable source for all your petroleum needs.

Request a delivery for heating oil, diesel fuels, and gasoline from our professionally trained personnel to your home, farm, construction site, or commercial accounts. Let us know how we can serve you by also calling 1-800-467-5044 today!