Why are gas prices so high in Illinois? Here are some answers to your fuel questions
Gas prices could set a record high this week as sanctions against Russia sent the national average to more than $4 per gallon, according to a gas price tracker.
“Gas prices have absolutely exploded in the last week,” said Patrick De Haan, head of petroleum analysis for GasBuddy. “Now is the time to concentrate on what Americans can do.”
Here are some answers to questions about gas prices.
Why are gas prices so high?
Sanctions on Russia following the country’s invasion of Ukraine caused a worldwide supply and demand issue, sending gas prices higher in the U.S. On Tuesday, President Joe Biden announced announced he would block exports of Russian oil to the United States as an additional sanction.
But such sanctions make it more difficult for Russia to export oil, and the loss of their supplies puts pressure on the rest of the system.
Russia exports roughly 5 million barrels of crude oil per day, according to automobile club AAA. The International Energy Agency announced last week that 31 countries would release crude oil reserves to reduce costs, but it hasn’t had a significant effect.
“Despite this announcement, the impact on pricing has been limited given that the amount of oil planned for release is small in comparison to the amount that flows daily from Russia to other countries around the globe,” AAA stated in a news release.
Prices already had been inflated due to supply issues related to the COVID-19 pandemic. Travel increased as coronavirus cases fell and safety mitigations were eased and refineries have struggled to keep production on pace with the demand for gas. Supply chain problems that have caused inflation in other industries also have played a part.
How much has gas increased?
The national average as of Monday was $4.06 per gallon, 45 cents higher than a week ago and the highest since July 2008, according to AAA. It’s 62 cents higher than a month ago and $1.30 compared to last year.
Illinois was among the top 10 most expensive markets, according to automobile club AAA. As of Monday, the average price of gas was $4.30 per gallon, compared to $3.66 per gallon in Missouri.
Will prices go down?
Increases could slow later this week, De Haan said. But unless the conflict in Ukraine suddenly ends, gas prices are expected to remain high. The price of crude oil will likely increase along with continued “disruption to tight global oil supplies,” according to AAA, possibly sending domestic prices higher as well.
There’s still a lot of uncertainty.
“Any end in sight? Million dollar question,” De Haan said. “There may be an end in sight. We really don’t know at this point.”
Can the government do anything?
President Joe Biden said in February he would do what he can to reduce gas prices. That could include releasing more from the Strategic Oil Reserve. The U.S. already announced it would release 50 million barrels, but the immediate impact on fuel prices was unclear.
Two senators introduced legislation that would suspend the 18-cent federal gas tax through the end of the year.
Gov. J.B. Pritzker proposed suspending a planned increase in Illinois’ gas tax that would have gone into effect this summer. The increase would have amounted to roughly 2 cents per gallon, Capitol News Illinois reported.
What can you do to save gas?
Slowing down on the interstate and making sure your tires are at the correct pressure can increase your vehicle’s fuel efficiency.
Use a gas tracking website to find the cheapest prices in your area.
Otherwise, the only thing you can do is cut down on unnecessary travel where possible, De Haan said.
This story was originally published March 8, 2022 at 6:00 AM.