Back in March NPR reported the average price of gas in the U.S. hit a then record $4.32 per gallon and in some places gas was much higher. That's getting painful for people on modest incomes, especially if they have long commutes or need to drive a lot, wrote NPR’s Chris Arnold.
Joe Brusuelas, chief economist with the Wall Street research firm RSM, told NPR it's been a few generations since prices for so many things including gas have gone up at once. "Rising prices will disproportionately hit poor, working class, and middle-class Americans."
Brusuelas predicts Americans will "experience a once in a lifetime source of sticker shock through the remainder of the year." Once in a lifetime because an oil shock coupled with broader inflation hasn't hit the U.S. since the mid-1970s observed NPR’s Chris Arnold.
And things are only going to get worse according to CNBC’s Pippa Stevens, especially for diesel customers.
U.S. middle distillate (diesel and jet fuel) inventory is now at the lowest level in more than decade. The move is even more extreme on the East Coast, where stockpiles are at the lowest since 1996. Diesel and jet fuel at New York harbor are now trading well above $200 per barrel, according to UBS.
Tom Kloza, head of global energy research at OPIS, told CNBC that in years past a barrel of diesel typically sold for $10 above the price of crude oil. Today, that differential – known as the crack spread – has surged to a record high above $70.
“It’s become untethered, unmoored, a little bit unhinged. These are prices we’re not used to seeing,” he said, adding that there are large price differences across the U.S.
Kloza said diesel at New York harbor is now trading around $5 per gallon, while jet fuel prices at the harbor, which usually mirrors diesel prices, are around $6.72. That equates to roughly $282 per barrel.
“These are numbers that are not just off the charts. They’re off the walls, out of the building, and maybe out of the solar system,” he said.
So, if NPR and CNBC say this is an unprecedented spike not see since the 1970s how did GasBuddy get it so wrong?
Americans for Limited Government President Rick Manning yesterday issued the following statement responding to GasBuddy petroleum analyst Patrick De Haan's claim that 2008 gasoline prices were "the highest inflation adjusted ever":
"GasBuddy might be a great app for finding the cheapest gas station in your area, but I wouldn't use it as a dependable source for tracking inflation in the gasoline market. Apparently embarrassed that Joe Biden's disastrous energy policies led to a massive 36 percent increase in gasoline prices in 2021 alone before Russia invaded Ukraine, GasBuddy petroleum analyst Patrick De Haan falsely claims that 2008 gasoline prices were 'the highest inflation adjusted ever' even though at 16.5 percent it was less than half the current increase. A cursory review of inflation data by the Bureau of Labor Statistics reveal higher gasoline average annual price increases in 1979 (35 percent), 1980 (38.9 percent) and 2000 (28.4 percent).
"Higher gas and energy prices are a feature of Biden's Green New Deal in an attempt to not only drive increased demand for electric vehicles, but also to usher in dependency on unproven and undependable renewable energy alternatives. Patrick De Haan would do well to review his recent press releases which have proclaimed that since March 7, 2022, 'U.S. National Average Price of Gasoline Hits New All-Time Record High' when he declared 'Americans have never seen gasoline prices this high...' Maybe GasBuddy should just focus on finding its clients the most affordable places to purchase gasoline and stay out of macroeconomics and partisan communications. ALG rates GasBuddy's inconvenient claim with the maximum four Al Gores for green disinformation."
The consumer price Index, which averages prices across America, rose by 8.5% in March 2022 from a year ago, the fastest annual gain in 40 years. Forbes reported energy prices rose 32% on an annualized basis in March.
So, how did GasBuddy get it so wrong? We’re with Americans for Limited Government’s Rick Manning: The only explanation is GasBuddy was covering for Joe Biden’s disastrous energy policies.
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