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Home›Consumer demand›Pinched at the pump | News, Sports, Jobs

Pinched at the pump | News, Sports, Jobs

By Marsha A. Jones
June 9, 2022
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After the most expensive Memorial Day weekend on record, the holiday hangover could last well into the summer. On Memorial Day, Ward County’s average price per gallon for regular unleaded gasoline averaged $4,293. Minot commuters found themselves a week later waking up to prices that had jumped $0.37 to $4.688.

“In the past, the increases were more gradual than what we’ve seen in recent weeks.” said AAA North Dakota spokesman Gene Laducer.

Currently, 10 states have gas prices above $5 a gallon, but the others will join them soon, as the national average is expected to hit that figure in the coming days. That’s in line with JPMorgan analysts’ May forecast for the national average to hit $6 in August. Laducer said high demand and fuel consumption from holiday travel has created pressure on gasoline futures, and these future reports will give analysts a better idea of ​​how steep the trajectory is approaching. of August.

“Now that people have taken their Memorial Day trips, they’re going to moderate.” says Laducer.

Until now, consumer demand for fuel has only increased with price, but after the record high holiday prices and subsequent spike, the metaphorical frog has begun to realize that the water is starting to boil. . Laducer said a recent poll found 88% of North Dakotans will moderate or change their travel plans this summer, after taking the first bite over the busy Memorial Day weekend. North Dakotans are not alone, as the AAA report indicates that 75% of drivers surveyed nationally would change their habits if the price at the pump hit $5 a gallon.

“The bigger the price increase, the bigger the changes people will make.” says Laducer.

Commuters may have to completely alter their lifestyles and schedules, using public transportation or carpooling with co-workers, as it is unclear if and when prices will stabilize after the price hits $6 or more. White House press secretary Karine Jean-Pierre answered questions during a press briefing on June 6 regarding the state of fuel prices in the country, comparing the increase at home to ours. neighbors and allies abroad.

“It’s really important for people to understand that similar issues are happening around the world.” John Pierre said, “It’s something that everyone feels around the world.”

Despite strong demand, the White House has adopted energy policies geared more toward the environmental lobby than stemming the tide. A year ago, a gallon of regular unleaded cost Minot about $2,837. The steady rise was ushered in by federal energy policies, resulting in an unmotivated and constrained energy sector. President Biden signed a series of executive orders shortly after taking office, one of which ultimately suspended and canceled federal oil and gas leases.

Such actions have caused nervousness among domestic producers, with prices exploding with the arrival of the global crisis caused by the Russian invasion of Ukraine. The administration turned to the Strategic Petroleum Reserve and decided to strike deals with countries like Venezuela and Saudi Arabia to avoid further funding the Russian energy industry.

As the nation grapples with scarcity and rising spending, the White House and other lawmakers have shown compassion, while offering few practical solutions for the average person to deal with the situation beyond the buying an electric car, as Michigan Senator Debbie Stabenow did in the Senate. Finance committee meeting on Tuesday. While sharing the details of his road trip to DC in his electric vehicle over Memorial Day weekend, Stabenow explained how wonderful it was not to worry about the prices of his trip.

“I look forward to the opportunity for us to transition to vehicles that will not depend on the whims of oil companies and international markets.” said Stabenow.

According to the Kelley Blue Book, the average price of an electric vehicle is around $56,000, which also matched the average median income of Americans who worked full time in 2021. Until electric vehicles became more affordable or gas prices stabilize, the weight of the new normal will be felt by those who cannot.



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