If your jaw drops everytime you go to the gas pumps, then you are just like many other residents in Southern California. It’s happening everyhere. Gas prices have reached astronomical highs and there seems to be no end in sight.
So how high are gas prices going to get? If you’re worried about it, then maybe you should consider converting a gas powered car to run on electricity.
Let’s take a look at where our oil comes from. About half of the crude oil in the United States is produced within its borders. Roughly half of our imported oil comes from the Western Hemisphere. Countries like Canada and Mexico rank among our top petroleum importers. A very small percentage of our total oil comes from the Eastern Hemisphere.
Understanding how high gas prices will get depends on several factors that ultimately affect the price of oil.
1) Taxation on Gasoline and Oil Products
A big chunk of government income comes from taxing oil and gasoline. If taxes on oil imports rise, you can bet it will affect the cost of gasoline at the pumps.
2) The US Congress Setting Import Tarrifs for Oil
There are currently no tarrifs in place for crude oil, but if the prospect of creating income from this becomes great, then the US government could affect a rise in gas prices
3) Stockholders of Oil Companies
If demand more profits, then gas will go up.
4) Efficiency of Gasoline Being Used
The more gas you use, the higher your gas is going to be. It’s pretty obvious, but if you’re seriously looking at your gasoline budget, then your fuel