A perfect storm of high demand and low supply drives fuel prices up through the roof. Driving your car costs a lot more – and heating your home this winter could, too.
A taxi driver said he was spending at least $ 300 more per month, forcing him to shop around.
“The difference is around 10 cents between the Amoco, the Mobil gas station and the Exxon,” he said.
The national average for a gallon of regular unleaded gasoline this week is $ 3.27, a seven-year high. According to GasBuddy, a price tracking service, the price of a gallon nationwide has increased by more than five cents in one week.
Meanwhile, benchmark crude oil prices have surpassed $ 80 per barrel for the first time since 2014. As a result, Chicago-area utilities predict heating bills will be up to 50% higher. this winter. The New York City Department of the Civil Service warned residents last week that their home heating bills could rise 21% from last winter.
“We face a looming energy crisis as we head into what could be a cold winter,” said Helima Croft, Managing Director and Global Head of Commodity Strategy at RBC Capital Markets. Croft said higher oil prices combined with increased demand for oil and concerns about a colder winter in Europe and Asia are all contributing to the rise.