It’s not unusual for gasoline prices to rise in summer. In the vacation season, when people are driving more and thus buying more gas, increased demand increases prices.
While we produce a lot of oil and gasoline in the United States, we depend upon much from overseas. Those suppliers know we want more, so their prices often go up in summer.
The United States maintains a large amount of oil in reserve at all times, in case of war or other emergency. Now, President Barack Obama is going along with some other nations in trying to ease gas prices by selling 60 million barrels of crude oil from the emergency reserves.
The idea is to reduce the power of the Organization of Petroleum Exporting Countries, or OPEC, over what we pay for gas.
But don’t expect “low” prices anytime soon. Prices in Chattanooga are much higher this year, averaging $3.37 a gallon for regular. A gallon cost $2.54 at this time last year.
Perhaps the release of some reserve oil will slightly reduce gas prices for a time. But reserves are limited, and they’re really meant to be used in times of true emergencies.
We could do a lot more to cut prices by removing unreasonable environmental restrictions on domestic oil exploration and developing our own massive supplies. But the president seems unwilling to do that.