Who Is To Blame For This?
So I guess it’s safe to assume most people are not happy with what has happened to the price of gas. We certainly react more when the prices rise like they have as opposed to when they decline which is what you expect. With rising inflation it’s been tough enough to pay more for food and other necessities but the staggering gas increase has made everyday life a greater challenge.
We all know the price of gas is rising because of Russia’s invasion of Ukraine which in the past couple of weeks has resulted in a sharp increase in the price of crude oil largely due to supply issues. Gasoline prices are largely based on supply and demand but there are other factors including the cost of acquiring and refining crude oil, distributing and marketing the gasoline and of course state and local taxes. Here in New Jersey we currently pay 42.4 cents a gallon in state taxes which trails only California, Pennsylvania and Washington as the highest in the nation. By the way you add another 18.4 cents a gallon courtesy of federal taxes.
Of course many of us point the finger at suppliers for the almost daily price increases but the American Fuel and Petrochemical Manufacturers insist their suppliers don’t set prices…its other costs which they do not control. That flows down to us and of course we have absolutely no control. Sure you can save a few cents here and there but really the only other choice is to drive less which will have a negative impact on other aspects of the economy and could be devastating to the local tourism season here at the shore.
At a time when the pandemic is waning and there is optimism that more people will return to the office don’t be surprised if many opt to work from home…not because of COVID but because they can’t afford to fill up their tank.
We need a break…and soon! Maybe pumping our own gas will help but who really has confidence that will make a difference when it comes to cost? I don’t.