Gas prices in the Midwest are usually lower than in other regions n the United States of America. However, recently it has begun to go up slowly and steadily, making the residents of this region ask, why are gas prices going up in the Midwest?
If you are a resident of the Midwestern region, including Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin, the continuous rise in the price of gas may worry you. You are not alone in this situation.
Find out in this article the factors responsible for the continuous increase in gas prices in the midwestern states.
Why are US gas prices rising?
Gas prices n the USA have continued rising despite the complaints from the residents of the country, and many factors are responsible for this, making it hard for them to fall down in 2023. Let us explore the reasons for the steady rise in gas prices in America.
The number one reason for the rise in gas prices is the global price of crude oil caused by the market forces of demand and supply, which is directly determined by the cut in crude oil production.
Secondly, the cost of importing crude oil into the US is another determinant factor in deciding gas prices. Moreover, it is also costly to import gas into some states in the US, leading to high gas prices.
The third factor is the gas tax in the United States, which is among the highest in the world, making gas vendors add more money to the gas prices, especially in states with higher gas taxes in the country.
Why did gas prices go up after Russia invaded Ukraine?
Once the war in Russia started, there were sanctions, restrictions, and sabotage on Russian oil, leading to a reduction in crude oil importation into the United States, which has contributed to high gas pieces in many states that depend on Russian oil.
Moreover, because Russia is a major exporter of crude oil in the world, the restrictions on its crude oil led to a low supply of the product globally; plus, there is a cut by OPEC Members on oil production.
Why are gas prices going up in the Midwest?
If you are asking, why are gas prices going up in the Midwest? Here is the answer. First, the voluntary drop in oil production by OPEC places upward pressure on Midwest gas prices, which have continued to rise recently.
Then also, Russia’s invasion of Ukraine had an impact on gas prices getting so high last summer and have not gone down since then. Rather, it continues to rise, even in the Midwestern states like Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin. According to reports, the national average cost of gas per gallon tipped just over $5 by June, with the Midwest hitting about $4.95.
In addition to these factors, there is a continuous increase in gas prices in the Midwest because of the high cost of crude oil and the high demand for the product, with a low supply in some states. Thus, in these states, there is much competition in the market, leading to high gas prices.
What state has the highest gas prices? Why?
If you ask, why are gas prices going up in the Midwest? You may also want to know which state has the highest gas prices in America. According to reports from AAA, the two states with the highest gas prices in America are California and Hawaii, with gas prices above $5 in these states. In addition, Florida, New York, and Washington are among the states with the ten highest gas prices in America.