Gasoline
Photograph ©2022 by Brian Cohen.

National Average Gasoline Price is At Record High Level in the United States

In addition, this new milestone has been reached...

If your wallet or purse is feeling the pain of paying a lot of money simply to fill your motor vehicle with gasoline, you are not alone, as the national average price for a gallon of gasoline is at an all-time record high level in the United States — to the point where none of the 50 states have an average price below $4.00 per gallon of gasoline, which is a milestone that has never happened in the United States until now.

National Average Gasoline Price is At Record High Level in the United States

Gasoline
In Nevada just north of Las Vegas, the average price of a gallon of gasoline has since exceeded five dollars per gallon. Photograph ©2022 by Brian Cohen.

Factors which have converged and have been cited to contributing to fuel prices substantially rising in the United States include the hostile invasion of Ukraine by armed military forces of Russia, significant inflation, the 2019 Novel Coronavirus pandemic, increased demand for fuel as the start of the summer driving season nears, and the switch to summer blend gasoline from the winter version of the fuel — all of which propelled the average price for a gallon of gasoline in the United States at a new all-time record level of $4.567, according to data from the American Automobile Association

…but another factor is the decrease of the inventories of both gasoline and crude oil. According to data of the weekly petroleum status report from the Energy Information Administration of the United States ending as of Friday, May 13, 2022, crude oil inventories decreased by 3.4 million barrels to a total of 420.8 million barrels, which is 65.2 million barrels — or 13.4 percent — below the inventory at this time last year; and it is approximately 14 percent below the five-year average for this time of year.

Moreover, the Strategic Petroleum Reserve decreased by five million barrels from the prior week to 538 million barrels — which is approximately 14.6 percent below the level at this time one year ago.

Inventories of gasoline also decreased by 4.8 million barrels to a total of 220.2 million barrels, which is 14.0 million barrels — or six percent — lower than the inventory at this time one year ago; and it is approximately eight percent below the five-year average for this time of year.

Things could be worse: the price for a gallon of gasoline is $10.966 per gallon in Hong Kong, which is currently the most expensive price per gallon in the world.

One other factor which has been circulating in social media is that mere corporate greed in the oil companies is also to blame for high fuel prices.

Final Boarding Call

Gasoline
Photograph ©2022 by Brian Cohen.

I have felt the financial pain at the gasoline pump myself: filling the tank of this 2022 Ford Edge — which I have not only rented but also spent the night in it because of a disgusting hotel property — cost approximately $62.00, which is the first time in my life I ever paid that much for one tank of fuel…

…and that occurred in Georgia, which is one of the states in the United States with the least expensive fuel primarily due to the tax on gasoline being temporarily suspended by Brian P. Kemp, who is the current governor of that state.

Unfortunately, what is occurring is the simple theory of supply and demand — and with regard to gasoline and other types of fuel, demand has increased substantially while supply has simultaneously decreased significantly.

Until this imbalance is somehow corrected — either by an increase in the supply of fuel or a decrease in demand or a combination thereof — expect the price of a gallon of gasoline to remain high for the foreseeable future…

…or even perhaps increase more, as reports speculate that the national average price for a gallon of gasoline could exceed six dollars by August of 2022…

All photographs ©2022 by Brian Cohen.

  1. why does no one ever complain about Microsoft or Google profits? The insane cost of Windows.

    What about pHARMa?

  2. Don’t fall for the left’s weak attempt to divert the reason oil and gas prices are so high. They want to attack capitalism because most of them are Marxists who attack capitalism because they favor communism. Biden is the one that shut down the oil lease auctions, shut down pipelines, and shut down domestic drilling. It couldn’t have been worse timing. Many companies make a profit. Many of these same folks pointing out oil company profits don’t mind if Apple made $124 billion in that same period. That is more than most of the oil companies, combined. It is a matter of supply more so than demand.

  3. Look at the oil company apologists on here. Why defend these giant companies? You’re comparing oil companies with Microsoft or Apple, but nobody needs either one of those companies to make it through daily life. These are false equivalencies, why are a typical low information form of argument. Even better is the argument that leftists are communists. How does someone not connect high gas prices with disruption to oil markets because the “leftists” banned purchasing oil from, wait for it, Russia, which is…communist? Low information arguments indeed.

  4. what a ridiculous bunch of dribble – brought to you by people who have no idea how energy markets work – gas was slightly over $2 nationwide when trump left office – were oil companies not greedy 16 months ago?

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