1 00:00:01,800 --> 00:00:07,080 Speaker 1: Welcome to brain Stuff, a production of iHeart Radio, Hey 2 00:00:07,160 --> 00:00:12,360 Speaker 1: brain Stuff Lauren vogebam here. Today's gas prices are uncomfortably 3 00:00:12,440 --> 00:00:16,279 Speaker 1: high for most Americans. The national average cost for a 4 00:00:16,320 --> 00:00:19,560 Speaker 1: regular gallon of gas was four dollars and nineteen cents 5 00:00:19,600 --> 00:00:23,520 Speaker 1: as of April four two. According to Triple A. A 6 00:00:23,600 --> 00:00:27,000 Speaker 1: month earlier, that same gallon would have been under four dollars. 7 00:00:27,360 --> 00:00:29,760 Speaker 1: A year earlier, it would have been under three dollars. 8 00:00:30,480 --> 00:00:33,600 Speaker 1: The one bit of good news, such high prices don't 9 00:00:33,680 --> 00:00:39,480 Speaker 1: last forever. Gas prices regularly fluctuate. The nation's all time 10 00:00:39,600 --> 00:00:43,640 Speaker 1: high price technically came on March eleven, two, when gas 11 00:00:43,760 --> 00:00:46,159 Speaker 1: hit a national average of four dollars and thirty three 12 00:00:46,159 --> 00:00:49,880 Speaker 1: cents per gallon. That price is dwarfed by the prices 13 00:00:49,880 --> 00:00:52,600 Speaker 1: seen at the pump. In July of two eight, they 14 00:00:52,720 --> 00:00:56,000 Speaker 1: hit four dollars and eleven cents, which equals five dollars 15 00:00:56,040 --> 00:00:59,440 Speaker 1: thirty cents in today's money. But this was just before 16 00:00:59,480 --> 00:01:02,880 Speaker 1: the onset of the global financial crisis sent gas prices plunging. 17 00:01:04,640 --> 00:01:08,800 Speaker 1: But as recently, gas was just a dollar six per gallon, 18 00:01:08,920 --> 00:01:11,600 Speaker 1: which equates to a dollar eighty six when adjusted for inflation. 19 00:01:12,120 --> 00:01:17,040 Speaker 1: The lowest price since, though during the nineteen seventies, when 20 00:01:17,120 --> 00:01:19,959 Speaker 1: there were a number of gas shortages, the highest average 21 00:01:20,000 --> 00:01:22,440 Speaker 1: price for gas was eighty six cents a gallon or 22 00:01:22,560 --> 00:01:27,520 Speaker 1: three dollars fifty three cents one adjusted for inflation. There 23 00:01:27,520 --> 00:01:29,800 Speaker 1: are a lot of factors that contribute to the price 24 00:01:29,840 --> 00:01:32,800 Speaker 1: of gas. For the article, this episode is based on 25 00:01:32,880 --> 00:01:35,440 Speaker 1: How Stuff Works. That spoke with Andrew Gross, a Triple 26 00:01:35,480 --> 00:01:39,680 Speaker 1: A National spokesperson. He said, the cost of oil accounts 27 00:01:39,760 --> 00:01:43,120 Speaker 1: for of what you pay at the pump. Another fourteen 28 00:01:43,120 --> 00:01:47,240 Speaker 1: percent comes from refining costs, sixteen percent is marketing and distribution, 29 00:01:47,600 --> 00:01:52,560 Speaker 1: and the last fifteen percent is taxes. The price of 30 00:01:52,600 --> 00:01:56,000 Speaker 1: crude oil, the main driver in gas costs depends upon 31 00:01:56,200 --> 00:01:59,920 Speaker 1: many factors, but the main one is simple supply and demand. 32 00:02:00,680 --> 00:02:03,280 Speaker 1: When there's a lot of oil out there, prices drop. 33 00:02:03,400 --> 00:02:06,160 Speaker 1: When there's not enough oil to meet demand, prices rise. 34 00:02:06,800 --> 00:02:10,080 Speaker 1: The world's oil supply is controlled by oil producing nations, 35 00:02:10,160 --> 00:02:13,840 Speaker 1: including the US, but also by OPAC, a cartel of 36 00:02:13,880 --> 00:02:17,320 Speaker 1: thirteen oil producing nations clustered in Africa, the Middle East, 37 00:02:17,360 --> 00:02:21,720 Speaker 1: and South America. The recent surge in gas prices is 38 00:02:21,760 --> 00:02:25,400 Speaker 1: partly due to Russia's late February invasion of Ukraine, which 39 00:02:25,440 --> 00:02:28,760 Speaker 1: has spooked the global oil market, But prices were already 40 00:02:28,760 --> 00:02:31,960 Speaker 1: climbing before the invasion due to the COVID nineteen pandemic. 41 00:02:32,760 --> 00:02:36,360 Speaker 1: Back in when COVID first emerged, the pandemic caused an 42 00:02:36,480 --> 00:02:40,440 Speaker 1: enormous drop in demand as people stopped traveling. This left 43 00:02:40,440 --> 00:02:43,959 Speaker 1: oil producers with a large surplus, so they cut back production. 44 00:02:45,560 --> 00:02:49,000 Speaker 1: More recently, with COVID vaccinations and boosters readily available in 45 00:02:49,040 --> 00:02:52,200 Speaker 1: the US and many other countries, demand for gases rising 46 00:02:52,320 --> 00:02:56,079 Speaker 1: as home bound citizens are eager to resume travel. Yet 47 00:02:56,080 --> 00:02:59,480 Speaker 1: oil producers are leery about quickly ratcheting up production to 48 00:02:59,600 --> 00:03:03,720 Speaker 1: meet this demand. The pandemic is still here for one thing, Plus, 49 00:03:03,760 --> 00:03:07,960 Speaker 1: there are major uncertainties about the situation in Ukraine. Producers 50 00:03:08,000 --> 00:03:10,720 Speaker 1: do not want to get stuck with another surplus on hand. 51 00:03:12,680 --> 00:03:15,440 Speaker 1: While the cost of gas is rising across the United States, 52 00:03:15,760 --> 00:03:20,160 Speaker 1: comparing prices between the states is jarring. California's prices are 53 00:03:20,160 --> 00:03:23,200 Speaker 1: the highest in the nation, averaging five dollars and five 54 00:03:23,240 --> 00:03:27,680 Speaker 1: cents per gallons statewide as of March twenty one. That 55 00:03:27,800 --> 00:03:31,680 Speaker 1: same day, Kansas posted the lowest statewide average, three dollars 56 00:03:31,720 --> 00:03:35,160 Speaker 1: and seventy seven cents A part of these price differentials 57 00:03:35,160 --> 00:03:39,520 Speaker 1: come from state gas taxes, which in two ranged from 58 00:03:39,520 --> 00:03:42,400 Speaker 1: eight cents per gallon in Alaska to fifty one point 59 00:03:42,440 --> 00:03:46,080 Speaker 1: one cents in California, where environmental requirements for its fuel 60 00:03:46,120 --> 00:03:50,720 Speaker 1: blends helped drive up the cost. A state's location within 61 00:03:50,760 --> 00:03:54,480 Speaker 1: the US also plays a huge role in determining fuel costs. 62 00:03:55,160 --> 00:03:58,200 Speaker 1: States that are closer to refineries and pipelines, which are 63 00:03:58,200 --> 00:04:01,800 Speaker 1: clustered in the South, have were gas transportation costs and 64 00:04:01,840 --> 00:04:05,000 Speaker 1: thus pay less than those states that are farther away. 65 00:04:05,160 --> 00:04:08,320 Speaker 1: The Western States are hit especially hard as they're far 66 00:04:08,360 --> 00:04:11,560 Speaker 1: away from refineries and their oil needs to flow through 67 00:04:11,600 --> 00:04:17,080 Speaker 1: pipelines crossing the Rocky Mountains, an expensive undertaking, but consider 68 00:04:17,120 --> 00:04:20,239 Speaker 1: the rest of the world. European countries such as Germany 69 00:04:20,279 --> 00:04:23,200 Speaker 1: and the Netherlands were charging nine dollars twelve cents and 70 00:04:23,279 --> 00:04:27,320 Speaker 1: nine dollars twenty cents per gallon of gas on March fourteenth, two, 71 00:04:28,279 --> 00:04:31,320 Speaker 1: and in Hong Kong, the world's most expensive place to 72 00:04:31,360 --> 00:04:34,839 Speaker 1: get gas, the price was whopping ten dollars ninety eight 73 00:04:34,880 --> 00:04:38,960 Speaker 1: cents per gallon. The citizens in some of the world's 74 00:04:39,000 --> 00:04:43,080 Speaker 1: oil rich countries luck out, though Iran, Libya and Venezuela 75 00:04:43,160 --> 00:04:46,280 Speaker 1: were charging their citizens of pittance for gas between ten 76 00:04:46,320 --> 00:04:49,640 Speaker 1: and nineteen cents per gallon as of March fourteenth two. 77 00:04:51,960 --> 00:04:55,280 Speaker 1: The reasons for the world wild gas price differentials are 78 00:04:55,480 --> 00:04:59,159 Speaker 1: similar to those facing the US. Prices differ depending on 79 00:04:59,200 --> 00:05:01,640 Speaker 1: how far the oil is traveling and the strength of 80 00:05:01,680 --> 00:05:06,960 Speaker 1: countries trade structures. For example, plus, many industrialized nations tax 81 00:05:07,040 --> 00:05:10,400 Speaker 1: their gas at a much higher rate than the US. Here, 82 00:05:10,640 --> 00:05:13,599 Speaker 1: the federal gas tax has been zero point one eight 83 00:05:13,640 --> 00:05:19,440 Speaker 1: four cents per gallon since European Union countries, in contrast, 84 00:05:19,720 --> 00:05:22,960 Speaker 1: must levy a minimum gas tax of thirty six euros 85 00:05:23,000 --> 00:05:26,279 Speaker 1: per leader that equals about a dollar fifty five per gallon, 86 00:05:27,320 --> 00:05:30,719 Speaker 1: and similar to how American states add their own taxes, 87 00:05:31,240 --> 00:05:34,760 Speaker 1: so do many countries in the European Union. The highest 88 00:05:34,760 --> 00:05:37,840 Speaker 1: gas tax in the EU is in the Netherlands, at 89 00:05:37,839 --> 00:05:40,520 Speaker 1: point eight one euros per leader, or three dollars in 90 00:05:40,560 --> 00:05:45,280 Speaker 1: fifty one cents per gallon. However, right now, no one 91 00:05:45,360 --> 00:05:49,559 Speaker 1: knows how long this upward trend will last. Gross said, 92 00:05:50,080 --> 00:05:52,960 Speaker 1: we haven't had a major European land war in seventy 93 00:05:53,000 --> 00:05:55,520 Speaker 1: five years, much less in the middle of a pandemic 94 00:05:56,240 --> 00:05:58,920 Speaker 1: O Peck and others are still producing oil at less 95 00:05:58,920 --> 00:06:02,040 Speaker 1: than pre pandemic levels. There are a lot of questions 96 00:06:02,040 --> 00:06:06,760 Speaker 1: out there. Most experts warn that gas prices will likely 97 00:06:06,839 --> 00:06:09,520 Speaker 1: continue to rise as we are nearing the summer season, 98 00:06:09,760 --> 00:06:12,640 Speaker 1: which is when gas is reformulated to ward against the 99 00:06:12,680 --> 00:06:16,000 Speaker 1: excess of operation that can occur when temperatures warm, a 100 00:06:16,120 --> 00:06:20,400 Speaker 1: pricey process. Yet, they say that sky high prices won't 101 00:06:20,480 --> 00:06:24,240 Speaker 1: last forever because if they climb to excessively, the economy 102 00:06:24,240 --> 00:06:27,240 Speaker 1: will falter and demand will plunge along with the price. 103 00:06:28,800 --> 00:06:31,200 Speaker 1: In the meanwhile, the best way to save gas is 104 00:06:31,240 --> 00:06:34,279 Speaker 1: to limit your usage, but because walking or biking to 105 00:06:34,320 --> 00:06:37,080 Speaker 1: work or the store isn't always possible, here are a 106 00:06:37,080 --> 00:06:41,360 Speaker 1: few things that everyone can do to use less fuel. First, 107 00:06:41,640 --> 00:06:44,760 Speaker 1: obey speed limits above fifty miles an hour or so. 108 00:06:45,240 --> 00:06:49,120 Speaker 1: Driving faster uses more gas. Going seventy five an hour 109 00:06:49,200 --> 00:06:51,240 Speaker 1: on the highway instead of sixty five miles an hour 110 00:06:51,600 --> 00:06:54,039 Speaker 1: can cost you six to seven more miles per gallon. 111 00:06:54,120 --> 00:06:57,760 Speaker 1: According to consumer reports, that means losing a hundred miles 112 00:06:57,760 --> 00:07:03,039 Speaker 1: of driving for every fifteen gallon tank. Okay, Also, drive smoothly. 113 00:07:03,640 --> 00:07:06,360 Speaker 1: Putting the pedal to the metal eats up gas, as 114 00:07:06,400 --> 00:07:11,840 Speaker 1: do hardbreaking and sharp turns. Next, keep your tires inflated. 115 00:07:12,200 --> 00:07:15,000 Speaker 1: The tires lose pressure over time, and when they're below 116 00:07:15,040 --> 00:07:18,239 Speaker 1: recommended levels, you can lose about fift of your car's 117 00:07:18,280 --> 00:07:24,080 Speaker 1: fuel efficiency. Also, if you can ditch any exterior hardware 118 00:07:24,200 --> 00:07:28,000 Speaker 1: and empty out your trunk to remove excess weight. Also, 119 00:07:28,160 --> 00:07:31,120 Speaker 1: don't idle. It takes less gas to restart your car 120 00:07:31,200 --> 00:07:32,880 Speaker 1: than to have an idle for more than a minute 121 00:07:32,960 --> 00:07:37,800 Speaker 1: or two. And finally, combine trips. Awaiting not only cuts 122 00:07:37,840 --> 00:07:40,440 Speaker 1: down on the number of miles driven, but reduces fuel 123 00:07:40,480 --> 00:07:44,080 Speaker 1: consumption as warm engines are more efficient than cold ones. 124 00:07:49,160 --> 00:07:51,640 Speaker 1: Today's episode is based on the article what's the most 125 00:07:51,680 --> 00:07:54,440 Speaker 1: Americans have ever paid for gas? On HowStuffWorks dot com 126 00:07:54,480 --> 00:07:57,960 Speaker 1: written by Melanie Redzeekie McManus. Brain Stuff is production of 127 00:07:58,000 --> 00:08:00,400 Speaker 1: by Heart Radio in partnership with how Stuff workst Com, 128 00:08:00,400 --> 00:08:03,560 Speaker 1: and it's produced by Tyler Clang. Before more podcasts from 129 00:08:03,560 --> 00:08:06,680 Speaker 1: my heart Radio, visit the i Heart Radio app, Apple Podcasts, 130 00:08:06,720 --> 00:08:08,560 Speaker 1: or wherever you listen to your favorite shows.