Washington: Industry experts say the current situation is unlikely to alleviate fuel shortages and inflation in the near future. The capacity to convert oil into gasoline in the US has been reduced to nine million barrels per day since the end of 2019. The US is the world’s largest oil producer. This is information provided by the US Department of Energy.
Global oil supplies are in crisis due to sanctions imposed on Russia. EU leaders have said Russia will completely ban oil by the end of this year. The US has already banned Russian oil. President Joe Biden has warned that this could affect American consumers.
As lockdowns progressed in the first year of the epidemic, consumers’ purchases of gas fell sharply. Many refineries (gasoline, jet fuel, diesel) production have been temporarily shut down to reduce their costs. Some were later opened. Others are not open at all. Open ones are not ready to invest in new facilities. They fear that with the advent of electric vehicles and the promotion of clean energy, petrol will not be as popular as it is now.
The owner said the Houston-based company, one of the largest refineries in the US, will close later this year. Low-income households are the hardest hit by rising gas prices. Employees working in retail and food outlets cannot work remotely. All they have to do is come to their place of work and work.
For many, public transportation is a means to an end. They can go from home to work and other needs only by refueling their vehicle at a high price. According to the National Energy Assistance Directors Association, the lowest-income 20% of households spend 38% of their income on gas and other fuels. In 2020, it was 27%.
Is there a solution to this problem? Like all other problems in life, people find their own way out. Drive vehicles very sparingly. Find out for yourself how you can reduce fuel. Patrick de Hahn, the gas buddy at the Gas Shopping App, says there is no other magic trick to it.
EU leaders have decided to cut 90% of their Russian oil purchases. The 27-nation alliance imports 25% of its oil and 40% of its natural gas from Russia. The decision was warmly welcomed by European leaders. The implication is that Russia will increase its oil prices tenfold. Those who buy oil from Russia will have to pay a price set by that country. Former Russian Deputy Chief of Defense Dmitry Medvedev has said that the ban would not end Russia’s war. He added that instead money would be withdrawn from welfare schemes or they would be scrapped.