Due to a combination of events including Covid-19, the Suez Canal 2021 container ship backlog, and the current Russian invasion of Ukraine, there are gas supply-side issues that are driving up prices. At one point, the U.S. was producing enough gas domestically to not have to import any gas from overseas. These are some reasons why we are in economic turmoil today!
During the past three months, we hit 40-year highs for inflation over a 12-month period. From February of 2021 through February of 2022 the inflation rate was 7.9%.
What does this all mean? To examine the rise in the annual inflation rate, we must first go back and examine the recent past. Look at the annual inflation chart since 2017 below:
Calendar Year Annual Inflation rate
2017 2.1%
2018 1.9%
2019 2.3%
2020 1.4%
2021 4.7%
2022 9.0?
From February 2020 through February 2021, the overall inflation rate has been 7.9%. Inflation is felt across our economy, starting at the supermarket as food prices have gone up by 8.6%.
These days, pulling up to the gas pump is somewhat of an adventure and a major topic of conversation. The cost of gasoline has gone up 38% since last February 2021. There are significant ripple effects of these gas prices, as over 70% of our goods and services are trucked across the country.
Have you recently taken a cab ride from one of the airports? Drivers from yellow cabs, Uber, and Lyft for the most part, use their own money to gas up their vehicles. There are not enough vehicle charging stations (yet) available for cabs currently, so they must rely on gas-powered vehicles. In order to earn a living, they must pass on the majority of their gas price increases to their ridership!
As of this writing, California has the most expensive gas in the country. Their average cost is $5.57 per gallon, the only state with an average cost of over $5. More than one friend of mine texted me a photo of a Shell station in Los Angeles charging $6.99 per gallon of regular gas! The states with the least expensive gas are Kansas and Oklahoma, both averaging $3.79 a gallon.
Unless the “Keystone Pipeline” project gets reawakened, I don’t see this issue subsiding anytime soon. Windmill power is being developed and many years away, so me must reply on gas. Gas prices can vary as much as 10-15 cents a gallon even a few blocks or miles away. The savings add up over time!
Heed My 7 Tips to Save Money at the Gas Pump:
Spring is officially here this Sunday and there will be more cars on the road. The bottom line is, a little bit of reconnaissance can save lots of $$$$! Let me know how it goes at [email protected].