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Georgia Southern professor discusses exactly why we are seeing high gas prices

Published: Mar. 8, 2022 at 8:14 AM EST
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SAVANNAH, Ga. (WTOC) - Gas prices around the country are still on the rise. Here in Savannah the price at the pump has gone up about 42 cents per gallon in the last week according to GasBuddy.com.

Richard McGrath, an economics professor at Georgia Southern University says we can expect to see high numbers at the pump and pay prices of more than $4.00 a gallon at least for a few months.

The reason behind the cost is all because of the Russia and Ukraine war. McGrath says because crude oil markets are international markets, once there is an impact somewhere in the world, it impacts gas prices across the globe.

Purchases of crude oil are made weeks to months in advance so international firms are looking at the market now trying to decide what the future will look like. Then, they adjust the prices so they don’t lose money. That is why we are seeing such a quick increase right now to compensate for what the market will be in several weeks.

“Once we have fully adjusted to the expectation that Russia may be out of the market for a while then it won’t necessarily continue to climb after that, it will stay at a higher level and then it won’t come back down until things in the international market change,” McGrath said.

He added that there are efforts underway to keep prices from going too high. The United States is pulling from its oil reserve to help with the price, but obviously that resource is limited. Also, we could see additional fracking production here in the U.S. since with the current crude oil prices, there is a higher profit margin for fracking.

For now, we know that adapting quickly to the change is hard. But keep in mind, we have seen low gas prices for almost a decade so we just need to change the mindset. Carpool and combine trips as much as you can to get down on usage. Also, keep tires fully inflated, keep matantance up to date and reduce highway speeds to get as many miles to the gallon as possible.

Please click here to check local gas prices.

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