The Hidden Driver of High Gas Prices

Source: The American Prospect
by David Dayen

“At this point, it is hard to disentangle overall inflation from surging gas prices. Last week, the national average rose above $5 a gallon for the first time in U.S. history, and it should only increase, given the summer driving season. Gasoline alone accounted for about 20 percent of inflation in May, and fuel also factors into the transportation costs of virtually every good. Many explanations can be offered for the spike, from generalized inflation to post-pandemic supply disruptions to Russia’s invasion of Ukraine to the unwillingness of Wall Street to invest in domestic production after severe losses in the past. But President Biden has now correctly pointed out a different driver: a lack of refinery capacity.” (06/16/22)