Americans leaving house again increased demand, price of gas
The American economy is booming back after the COVID-19 pandemic. The nation’s unemployment rate dropped to 4.6% in October 2021, the lowest since the start of the pandemic. Wages have also increased and are outpacing inflation by 3x.
Because the economy is doing so well and COVID cases have decreased, Americans are leaving the house again, heading back to work, to school, to restaurants, and to vacations. With so many Americans commuting again, demand for gas is higher than it has been during the past two years even though production is a bit lower than average due to Hurricane Ida. This has caused gas prices to go up.
The price of gas has stopped increasing now that oil production and demand have reached equilibrium. As long as production costs hold steady, Americans can expect the price of gas to do the same. Fortunately, increased wages should help many Americans pay for gasoline at its current price.
In the meantime, the Biden Administration is urging private oil companies to increase oil production to decrease prices for American families.