Gas prices in Charlotte are above $4. What’s driving up the cost at the pump?
After a brief period of relief, the price of gas is creeping back up in Charlotte.
The current average cost of a gallon of regular gasoline in Charlotte is $4.05, up from $3.89 a week ago, according to AAA.
Since April 28, North Carolina has seen the sixth highest weekly increase in gas prices in the country, just behind Michigan, Ohio, Washington, D.C., Pennsylvania and New Jersey, data from AAA show.
Here’s why prices are going back up as Americans pay more at the pump.
Why are gas prices going back up in Charlotte?
AAA says rising oil prices and increasing gas demand has pushed pump prices higher with the likelihood they will continue to rise.
There was a spike in crude oil prices after the European Union announced a proposal to ban Russian oil imports within six months, but it’s not clear if the plan will be approved, according to AAA.
Last month, President Joe Biden announced the U.S. would release more than 180 million barrels of oil from its strategic petroleum reserve, but experts say gas prices will continue to fluctuate as Russia’s conflict with Ukraine persists.
“Compared to early 2019, the US has about a million barrels a day less of capacity to refine and this is absolutely you know, it makes a difference especially you see the price of diesel now has eclipsed $5 a gallon,” GasBuddy Head of Petroleum Analysis Patrick De Haan recently said. “There’s just not enough refining capacity, there’s not enough oil to satisfy the market demand and that’s why prices have gone up so much.”
How much money are oil companies making as gas prices surge?
As oil prices rise, major oil companies have reported record-high profits.
ExxonMobil and Chevron, two of the largest oil companies in the U.S., earned $5.5 and $6.3 billion respectively during the first three months of the year, the New York Times reported.
Shell reported earnings of more than $9 billion during the first quarter of 2022, nearly triple the amount the company earned during the same time last year, Forbes reported.
Some members of Congress have proposed legislation to enact a temporary tax on oil company profits, The Charlotte Observer previously reported, but the bills have stalled in the House.
According to a recent poll from Hart Research, 80% of voters favor a windfall profits tax on oil companies.
This story was originally published May 6, 2022 at 3:15 PM.
