If gasoline were to cost $10 dollars per gallon, it would undoubtedly ruin the country’s economy. That is why the price of fuel is one of the biggest concerns, since it could cause a sharp drop in the Gross Domestic Product.
And it is that the middle class and lower class families would fall into financial problems if this were to happen, since a price of $10 dollars per gallon would increase the costs of housing, clothing and food.
The fear becomes even greater when the JP Morgan bank has said that the price of crude oil could rise to $380 dollars per barrel, if the conflict between Russia and Ukraine are intensifying.
And it is that prices of oil to $12 dollars would drive gasoline prices above $10 dollars per gallon, and perhaps reaching $15.
Gasoline prices depend mainly on oil prices. Other elements that influence are refinery costs, transportation and state and federal taxes. President Biden and some state governors have suggested that a temporary suspension of these taxes would help consumers pay less.
It should be noted that gas prices across the country are not uniform. California generally has the most expensive gasoline. If the US average per gallon of regular gasoline is $10 dollars, then it will probably come in close to $15 dollars in California. This state has about 12% of the population.
The states with the least expensive gasoline tend to be near the large refineries southeast of Houston. These include Oklahoma, Texas, Arkansas, Louisiana, and Alabama.
Some say higher oil prices won’t cause prices to rise because people now drive less and use public transportation more. , as reported by 24/7 Wall St. But this is only true to a certain extent, since the public transport offer is limited and many people drive to work, in addition that others take the children to school.
For them, there are no alternatives, they have to use a car.
A year ago, oil at $100 dollars and fuel at $5 dollars a gallon were unimaginable prices, but we have already reached that point, so it should not be ruled out that it reaches $10 in the near future.
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