The Cost of Gasoline
by Medallion Bank | July 7, 2022
It’s common for energy costs to fluctuate with various economic circumstances. The demands for gas were lower as the pandemic raged and as travel became far more limited. Employees were working from home, avoiding a commute. Travelers stayed home as restrictions were implemented.
However, as people have returned to normal, gas supply has had a difficult time keeping up with the increased demand. Although many companies and individuals are pursuing alternative sources of energy, such as electric cars or solar, the need for oil remains. Unfortunately, this demand is also contributing to the rising inflation across the country.
Where Does Our Gas Come From?
Gasoline can either come from domestic production or imports from other countries. Nearly all the gas sold in the U.S. is produced in the U.S., according to the U.S. Energy Information Administration (EIA).
Most gasoline products move from refineries through pipelines, where large storage terminals are located (usually near consuming areas). From these locations, it will undergo more processing before truck drivers deliver the gasoline to the individual fueling stations.
Since all gasoline have the same origins, the only difference in gas companies are the additives blended into the gas before it reaches the fueling station. The top five states for producing natural gas include:
- Texas – 24%
- Pennsylvania – 21%
- Louisiana – 9.5%
- Oklahoma – 7.6%
- West Virginia – 7.1%
Gas Price Trends
It’s important to understand that gas prices have been steadily climbing over the years, however the national average is currently up $1.08 per gallon from last year. Industry analyst Trilby Lundberg of the Lundberg Survey said the rise is a result of crude oil prices increasing, while the demand continues to climb in Europe.
With many people eager to return to normal, U.S. retail gasoline demand rose to its highest level in nearly a month, according to Gasbuddy. Although it may feel like there’s no relief in sight, gas prices will likely return to normal at some point in the future. These costs often depend on a wide variety of factors, which will need to come together to find a solution.
About Medallion Bank
With so much uncertainty, it’s nice to work with a reliable financing provider. With increasing inflation, customers will be more interested in payment options as they seek to fulfill their dreams.
Contractors and recreation dealers can offer financing without posing an unnecessary risk to themselves. Medallion Bank assumes the risk based on their review of an applicant’s creditworthiness. Businesses simply provide their product or service and leave the rest to us.
Working with an experienced second-chance lender allows business owners to reap the best of both worlds. If you are interested in teaming up with Medallion Bank, please contact our team today to learn more about our credit evaluation process.
