Over the past ten years, the price of gas per gallon has drastically changed. In September 2001, the national average of gas was $1.53 per gallon and by July 2008 the average price peaked at $4.11 per gallon. Since 2008 the price has fluctuated, but now reports show that gas prices are on the rise again. So, what’s the 411 behind high gas prices?
How did gas prices got to this price?
With the current national average for gas at $3.79 per gallon, millions of Americans are speculating that the weather and the falling value of the dollar are to blame. However, Mint.com reports that short-term price shifts, like this one, is influenced by “market sentiment.” So what current sentiments are affecting gas prices? CNN lists two factors: the dispute with Iran and the growing demand.
Iran is said to hold the world’s fourth largest oil reserves, exporting 2.2 million barrels of oil a day. In February, Iran’s oil ministry stopped oil shipments to European countries in order to layout future oil export conditions. Mint.com points out that even though not “a drop of Iranian oil” has been imported to America since 1979, their recent policy change has affected the world market for oil and, in turn, American gas prices.
Another factor for rising gas prices is the growing demand for gas. CNN reports that the recent “oil consumption growth” comes from China’s growing population and economy. Over the past year, China’s oil consumption has increased by 5 percent. CNN also reports that developing countries are also consuming more oil. This also affects the world market for oil, just as Iran’s new policies.
Are you looking for cheaper gas in your area? There are great apps and websites that you can use to find the best bargain like the FuelFinder App, the GasBuddy App, and GasBuddy.com. For extra savings consider checking your credit card company to see if they offer any rewards for charging gas (like 2 percent cash back). Also, consider cleaning out your trunk since extra weight reduces gas mileage.