There’s been a massive jump in the price you pay at the gas pump just within the last year thanks to the war in Iran. On average, Americans are paying roughly $1.50 more per gallon than they were at this same time last year.
Greg Upton is Executive Director and Associate Research Professor at the LSU Center for Energy Studies. He notes that, even though the Gulf Coast region (and the United States as a whole) is a net exporter of oil, any disruption to the global supply is felt regardless.
“The market for oil has been described as one very large pool,” Upton explains. “So, whenever you have a global disruption to supply like we’ve seen here, that’s going to impact the global price regardless of whether or not you’re a net importer or exporter of the product,” he went on to note.
President Trump has floated the idea of suspending the federal gas tax, but that would require Congressional approval. Even with the needed votes, many experts remain skeptical that the savings would amount to much for the average American consumer.
Roughly 20% of the global oil supply exits the Persian Gulf and enters the world market through the Strait of Hormuz. That disruption will continue to cause significant increases in gasoline prices for as long as it remains closed off according to Upton.
The suspension of the federal gas tax unlikely to offer relief for many
The suspension of the federal gas tax unlikely to offer relief for many
