Why Are Gas Prices So High?
Commuting to work or school has been expensive lately. You’ve probably noticed the high gas prices when filling up your tank. What does this mean, not just for Alabama, but also for the country?
All over the world, there has been a supply chain issue for gas due in part by the pandemic. The massive factory closures in china are causing the supply chain disruptions for Asia. Add this with the surge of supply and demand and you get these extremely high prices. This doesn’t just mean higher gas prices, but the supply chain issue also affects package deliveries.
Global Economist Megan Green explained why the United States is having a supply chain problem.
“The issues much more with laborers, so there’s a shortage of long shore workers and truckers to actually get stuff off of shipping containers and into stores and onto shelves,” stated Green. “So, we’re seeing it as we re-open the economy and demands surged firms haven’t been able to keep up with production and also with shipping. So, we’re seeing these supply chain disruptions everywhere and they’re driving prices higher.”
Megan Green predicts that the high gas prices will continue another 6 months before going back down. So unfortunately, gas prices are only going to climb higher as the winter months roll in.
Experts strongly request not hoarding gas because it will only drive the demand for it up.