Rateworks auto loan refinance
March 14, 2022

Why Are Gas Prices So High Right Now?

The average gas price in the US is now at the highest level in history. Prices are higher than the previous record of $4.10 per gallon.

Graphic representing high gas prices
Written by

Jennifer Moore

The average price of gas in the US is now at the highest level in history. There’s no point in noting that figure here, as it will likely be higher when you read this. Let’s just agree the price is considerably higher than the previous record of $4.10 per gallon of regular gas set back in the summer of 2008.

First, let's look at the price triggers that are causing gas prices to be so high right now:

  • There is higher fuel demand and lower available supplies in our post-COVID recovery.
  • There is lower global crude production feeding into American oil companies.
  • Runaway inflation is impacting gas, housing, and food at levels not seen since the 1980s.
  • And the tipping point, Russia's war with Ukraine and has resulted in US-issued sanctions against Russian oil and gas imports.

Taken all together, according to cnet.com, the average American driver is spending $1,100 more a year on gasoline than just 12 months ago.

Screen showing rising gas and energy costs

How you can offset higher pump prices

  • Driving at moderate speeds and avoiding excessive idling will waste less gas. Driving with your windows closed on the freeway reduces wind resistance and improves your gas mileage. And, clearly, making fewer trips around town or ride-sharing to work will save you precious gallons every week.

How long will gas prices remain high?

While no one knows when fuel prices will reverse course, and with some experts predicting prices to approach $5 a gallon in the months ahead, it's best to find other ways to save money. In addition to adjusting your driving style, evaluating your monthly auto budget can open up saving opportunities. If you think you are spending too much on your monthly car payment, RateWorks can help.

Get an instant quote today to see how much you could be saving. Lower monthly payments will free up the cash you need for an emergency expense or higher monthly bills — such as your gasoline bill, for example — and allow you to get your auto budget back on track.  

RateWorks has saved drivers an average of $110 per month when they refinance their loans with us, which will more than cover the added money you are now spending at the pump.