Inflation Nation: Gasoline Prices At Multi-Year Highs Despite Plummeting Demand
The consequences of last year’s money printing, largely to bail out states run by Democrats and RINOs who shot their economies in the foot repeatedly, are becoming increasingly apparent over time as the printed money spills over into more sectors of the economy. This pain is set to be increasingly felt at the pump as gasoline prices have climbed to their highest point in seven years, even though demand has been slipping for the last four weeks in a row.
According to The Epoch Times, in addition to newly printed money finding its way through the system, the supply chain disruptions caused by the aftermath of Hurricane Ida have added even more fuel to the fire by taking out key sources of domestic petroleum production along the Gulf Coast. Indeed, this reality was made official when the U.S. Energy Information Administration (EIA) published data and forecasts showing that national average gasoline prices for the month of August increased to $3.16 a gallon. In the near term, this record is expected to be challenged as supply chain disruptions linger as the Gulf Coast region recovers its productive capacity.
Having said this, it is a historical norm that gasoline demand and prices peak around this time of year when people drive more often to take advantage of summer and trends downward during the fall. But with consumer price inflation almost a guarantee following large amounts of money printing, it remains to be seen if this trend will hold true this coming fall.
This increase also took place in international crude oil markets, with the price of a barrel of crude oil nearly 1 percent on Monday across most international benchmarks such as WTI and Brent. However, the EIA remains optimistic that crude oil prices will be several dollars lower next year compared to this year. And if there is one thing the citizenry can count on, it is the ability of the government to not sugarcoat incoming economic hardship.