Title: Why are Gasoline Prices Rising? - Consumer Bulletin
Headings: Why are Gasoline Prices Rising?
Why are Gasoline Prices Rising?
Supply and Demand for Oil
Federal and State Taxes
Distribution and Marketing Costs
Refining Costs
Conclusion

Content: Why are Gasoline Prices Rising? - Consumer Bulletin
Why are Gasoline Prices Rising? Mary Hutzler2021-05-20T20:50:19+00:00March 23, 2021|
By Mary Hutzler, distinguished senior fellow, Institute for Energy Research (IER)
As of March 18, 2021, gasoline prices in the United States are averaging $2.88, 30 percent higher than a year ago. From an economic standpoint, supply and demand have been mostly responsible for the increases. On the global stage, demand has recovered in China and India and is on the upward spiral in Europe as well as the United States. Oil stockpiles that rose during the coronavirus pandemic have decreased due to output cuts by OPEC+ (OPEC and its partners) and lower production in the United States. U.S. oil production was further curtailed by more than 10 percent, 1 million barrels per day, due to the freezing weather hitting oil producing states, particularly Texas. Adding to that, OPEC+ recently agreed to continue its production cuts through the end of April with minor exceptions. A March 7 attack on a Saudi oil port had further increased global oil prices. The result is that consumers in the United States are facing gasoline prices that are inching up to near $3 a gallon on average.