Lots of things affect the prices of everything we buy. Supply and demand are foremost. And then there are many other market conditions that may affect production, delivery and thus prices.
But it may be surprising to many American motorists to realize that gasoline prices today are about a dollar a gallon higher than they were this time last year!
As you drive up at a service station these days, you see “$2” before the decimal point that is followed by figures telling you it will take an additional 65 cents or so to buy a gallon of gas.
Last year, that $ mark was followed by a “1,” not a “2.”
There is no new war or other crisis. Why the dollar difference?
There are lots of explanations, with “weather” being one of them. But crude oil now is about $82 — $10 more per 42-gallon barrel than it was just six months ago.
With the economy in recession, cars getting more miles per gallon of gas are particularly attractive.