For many drivers, trips to the gas station aren’t a very pleasant experience. The recent rise in gas prices is increasingly affecting drivers’ pockets. It is causing some drivers to take a hard look at how often they start up their cars to drive and what alternative transportation options are available to them. Read the blog below to learn more about the causes of the current rising gas prices and how long it’s likely to stick around.
Crude Oil: Rise in Gas Prices
Crude oil is the number one factor in the price of gasoline in the United States. Crude oil is the raw material that is used to make gasoline. Many individuals consider it to be one of the world’s most precious natural resources because its price can significantly impact people around the globe.
The price of crude oil has been increasing since late 2021. However, The recent Russia-Ukraine conflict has led to some difficulties concerning the access that the United States has to crude oil. The U.S. and other countries enacted sanctions against Russia, which had an impact on the world’s oil market – making it more expensive.
When you talk about crude oil, you also have to discuss refining – the process that is implemented to turn the oil into gasoline. In fact, crude oil is a key ingredient in gasoline, jet fuel, and diesel fuel. The United States has refineries stationed across the country, but many refineries have closed down before newer ones opened up to start and continue the process of refining crude oil.
Let’s Talk Solutions!
What can be done to help with this problem? Some say that politicians should advocate for new policies that will increase the country’s supply of gasoline. Others believe that tapping into the United States’ emergency oil reserves would do the trick, even though it may only present a temporary solution.
Some states have paused gas taxes to cut down on prices at the pump. Meanwhile, President Joe Biden has requested that Congress suspend the federal gas tax for three months, since federal fees result in 18 cents added to the price per gallon of gasoline.
Consumers Cutting Costs
In the meantime, there are some things you can do to avoid paying so much money at the gas pump.
- Join a fuel rewards program – These are set up to reward you for being a loyal customer of a particular gas station.
- Find the best price – You may benefit from keeping track of which gas stations tend to have the cheapest price per gallon. There are apps available to help with this process. Don’t forget word of mouth works well too!
- Travel less or seek alternative options – This may seem like a no-brainer but it’s worth mentioning. If you don’t start up your car as much, you will hold on to gas a little longer. Maybe this means you take public transportation more often or decide to carpool to work a couple of times a week.
- Pay with cash – Many gas stations offer a lower price per gallon when you pay with cash instead of using your debit or credit card. Gas stations pay a fee when customers use their cards, so this is a win-win situation for everyone.
Transportation Insurance Brokers: We’re Here to Help
Gas prices aren’t making things easier for the transportation industry but Transportation Insurance Brokers wants to offer some relief. We provide comprehensive insurance services that can give you peace of mind.
We are the largest brokerage firm dedicated to passenger transportation in the United States. Our services include commercial auto insurance, garage keepers insurance, umbrella insurance, and much more. Click here to learn more about what we offer and how we can be of service to your business.