Quote:
Originally Posted by thevillages2013
Why compare today to 72 years ago ? Compare to just three years ago and we are literally paying double the price. Yes before the pandemic. Telling me inflation drove that? Horse puckey
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According to the experts, there are three factors at play:
1. Post Pandemic demand. During the pandemic people sheltered at home so the typical driver cut their demand for gas in half. That sharp decline caused gas prices to plummet to a low of $1.94/gallon in April 2020.
2. Cuts to Oil Production. As the global economy recovered from the pandemic, OPEC was slow to ramp up production. The demand was far higher than the supply, causing higher prices.
3. War on Ukraine and global sanctions make it difficult for Russian oil to flow to the global market causing a 20% spike in oil and gas prices in just weeks.
Experts say oil and gas drilling in the US has increased but companies in the U.S. are constrained by tight supplies of rigs, trucks and labor that they need to supply more oil.
Even so, when adjusted for inflation, today's fuel prices are still below their peak in 2008.