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Tags: gas prices | inflation | biden administration

Lauren Fix, The Car Coach: When Will Gas Prices Go Down?

gas prices
(Dreamstime)

Lauren Fix By Tuesday, 29 March 2022 07:14 AM EDT Current | Bio | Archive

Gas prices are rising daily and hitting record numbers at the pump. For millions of drivers across America, this is causing real financial harship. Many people are asking why fuel is so expensive and who's to blame. Consumers want to know when they might see some relief via lower prices.

A typical family may has seen additional costs of $2,000 per year, simply due to the higher costs, according to one Wall Street estimate. On March 11, gas prices again reached a new peak, $4.24 for regular, $4.90 for premium, and $5.09 for diesel, according to the Gas Buddy app. Gas prices have been rising for more than a year and this is far from over.

Drivers did see some small relief of a few pennies per gallon when gasoline reserves, which should be saved for emergencies, were dumped on the market. Sadly, that release was only two days of what we use daily. Then prices increased and continue to do so.

Biggest Sting in California

The state of California has the highest gas prices with the highest gas taxes at over 50 cents per gallon above the national average, $4.23 a gallon on March 29, 2022, 62.4 cents higher than a month ago. In fact, throughout most of the state, gas is well above $7 a gallon. Families are budgeting for higher gas costs and cutting spending in other areas.

Some Americans are already driving less due to the higher prices. One in three adults say they reduced their car usage last month, with most blaming higher gas prices. As a reminder, gas prices were $1.94 per gallon in April 2020. This huge price increase effects every driver, every ride share, transportation of goods, food costs and literally everything we do and buy.

U.S. producers said they are boosting production, but warned that supplies could take a while to trickle through to the market and move prices at the pump.

The U.S. imports less than 10% of its oil and gas from Russia. So why are prices rising so much in the U.S. if the nation doesn't depend on Russia for fuel? The surge in gas prices is due to the larger global oil market.

Biden's First Move: Cancel Keystone XL

President Joe Biden's policies for higher gas prices were made on Day One with the administration's decision to cancel the Keystone XL pipeline, and the executive order to pause oil and gas drilling on federal land in January 2021. A federal judge in Louisiana blocked that order in June. However, we haven’t returned to energy independence.

Experts say the U.S. is producing more oil now than it was it was in 2020. Oil and gas drilling has increased, but companies in the U.S. are constrained by tight supplies of rigs, trucks and labor in order to supply more oil.

The governments emphasis on shifting away from fossil fuels and toward electric vehicles may add uncertainty for oil and gas producers, which could give them concern in boosting production.

Prices to Remain High for Months

Expect gas prices to remain high for more months. Overall inflation will likely get worse in March and April. The barrage of rising costs is taking a toll on consumers across the board. Inflation could start easing later in the year but is likely to remain high, many experts have forecasts that the inflation rate will dip to 5.5% by September. There are many variable in play that could change the rate.

If oil prices remain below $100 for a while, drivers may eventually see some relief at the pump, with prices falling below $4 a gallon. Sadly, Gas prices fall twice as slowly as they rise after a major change in oil prices. This means if it took four weeks for gas prices per gallon to increase 25 cents, it would take them eight weeks to fall 25 cents once oil prices returned to their starting level.

Some people are claiming price fixing. This is not true. There are over 14,000 gas station outlets in the country, with no single company controlling more than 5% of the market, so collusion between owners to keep prices high is unlikely true. Hence, owners wait until they see a trend in oil prices and the costs to real their tanks is what they charge. Gasoline is typically gives a minimal profit to retailers, they make more money when you buy something in their stores.

For now you can find the cheapest gas through the Gas Buddy app and club discounts. Maintain your cars and forget the drive through to get the most for your money.

Additional articles on our website https://www.CarCoachReports.com

"LAUREN FIX'S GUIDE TO LOVING YOUR CAR” Book - https://amzn.to/3ifDi3j

Total Car Score Podcast ► Hosts: Lauren Fix, Karl Brauer and Javier Mota. https://www.revolverpodcasts.com/shows/total-car-score/
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Lauren Fix, The Car Coach®, is a nationally recognized automotive expert, media guest, journalist, author, keynote speaker and television host. A trusted car expert, Lauren provides an insider’s perspective on a wide range of automotive topics and safety issues for both the auto industry and consumers. Her analysis is honest and straightforward.

Lauren is the National Automotive Correspondent for Newsmax TV, a conservative news net carried in 23 countries and in over 35 million U.S. cable/satellite homes. She is also The Weather Channel and Inside Edition’s auto expert. Lauren Fix serves as a juror for the esteemed North American Car & Truck of the Year Awards (NACTOY).

Lauren is The Car Coach columnist for Parade Magazine and eBay Motors and writes a weekly column. She also appears weekly on USA Radio’s DayBreak USA.
Lauren is the president and founder of Automotive Aspects, Inc., a consulting firm with a wide range of multi-media services, including media consulting, broadcast messaging strategy, public relations and television production.

Lauren is the author of three books: most recently, Lauren Fix’s Guide To Loving Your Car with St. Martins Press, Driving Ambitions: A Complete Guide to Amateur Auto Racing, and The Performance Tire and Wheel Handbook.

Lauren’s broadcast experience includes Oprah, Live! With Regis and Kelly, The View, TODAY, 20/20, The Early Show, CNN, FOX News, FOX Business, MSNBC, HLN, TBS Makeover and a Movie, Inside Edition, ESPN, TBS, Discovery, Speed and NPR, to name a few. Lauren previously hosted four seasons of Talk 2 DIY Automotive on the Do-It-Yourself Network (DIY), was the National Automotive Correspondent for Time Warner Cable and hosted Female Driven on Lifetime TV.

Lauren’s articles and advice have appeared in USA Today, Good Housekeeping, Redbook, eBay, Woman’s World, Esquire, First for Women, InTouch and Self. She has also contributed content to Motor Trend, Truck Trend, Hot Rod, Car Craft and many other automotive publications.

Lauren is a member of the Society of Automotive Engineers (SAE), the Society of Automotive Analysts (SAA) and is an ASE (Automotive Service Excellence) certified technician. She inherited her love of all things automotive from her father, who owned a brake remanufacturing business and worked for many U.S. manufacturers. Lauren has been fixing, restoring and racing cars since the age of ten. She has been advising drivers almost all her life.

In addition to being a leader in positive consumer awareness and the automotive industry, Lauren is often asked to speak to groups around the world about her success in marketing, motivation, entrepreneurship, parenting and other lifestyle topics.

Lauren was named the 2015 WIN Award, 2013 SEMA Business Network “Mentor of The Year”; SEMA Business Network 2012 Woman of the Year; and awarded various Car Care Council “Automotive Communications Awards” in 2012, 2013 and 2014. Past awards include 2008 Automotive Woman Of The Year and 2010 Woman of Distinction – Entrepreneur winner. Lauren Fix was inducted into the National Women and Transportation Hall of Fame in 2009 – a very high honor for a hard working automotive professional.

 

© 2022 Newsmax Finance. All rights reserved.


LaurenFix
Gas prices are rising daily and hitting record numbers at the pump, this is causing financial pain at the pump for millions of drivers. Many people are asking why fuel is so expensive and who's to blame.
gas prices, inflation, biden administration
1305
2022-14-29
Tuesday, 29 March 2022 07:14 AM
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