Everyone likes to blame Middle East tensions for high gas prices, and there is at least some reason for such blame. But, unless demand decreases, gas prices aren't comingdown anytime soon and likely going up even further. That's not a bad thing, just a basic market result. As demand increases, prices go up. From ABCNews:
"This is the time of year when we're supposed to be building supplies, but it seems like the refiners just can't get ahead of what has been very, very strong demand," he said.
Today's report shows that the national supply of gas is at the low end of its average range for this time of year, meaning the United States will have less gas in the tank before the peak summer driving season in the coming months.
Analysts said that puts the country on the edge, making any disruption in supply — such as a hurricane in the Gulf of Mexico refining regions or an expansion of the crisis in the Middle East — that much more dangerous.
"Everyone asks me, will we see $4 a gallon? And the answer is, there is a strong possibility that we may see $4 a gallon," said Flynn.
So what can we do to lower gas prices? Either increase supply or decrease demand. As consumers, we have no control over the supply side of things. So the only way we can control gas prices is to decrease demand. So here we go again: Drive Less!*
*For those new to Env-Econ, "Drive Less!" is an answer to the question "What can we as consumers do to bring down the price of gas?" "Drive Less!" places the burden on drivers to take action. Gas prices are high because drivers are willing to pay high gas prices. "Drive Less!" and gas prices will fall.
