Skip to main content

COVID-19 drives gas, oil prices to their highest in 7 years

Gas prices are on the rise again, thanks to the highest oil prices in seven years, and industry analysts say they could go higher because of imbalances between supply and demand due to COVID-19.

The average price for a gallon of gasoline is $3.25 per gallon, according to GasBuddy, an application and website that provides users gas prices at nearby gas stations.

The average price is $1.08 higher than it was a year ago.

Prices jumped this past week when OPEC said it would not boost oil production in the middle of a global shortage caused by deep production cuts at the height of the COVID-19 pandemic.

“We can thank just about everything that we’re seeing now on the fact that COVID stifled consumer demand long enough that it caused prices to collapse, which caused production to collapse,” said Patrick De Haan, petroleum analyst for GasBuddy.

Oil companies reacted swiftly last year when the pandemic sharply reduced demand for gasoline, which sent oil prices plunging.

“They did so by cutting production and laying off tens of thousands of workers who, now in many cases, have moved on to other areas and received jobs elsewhere, so this is simply like many things in the last year induced by COVID and made a challenge by tight labor markets,” De Haan said.

Fuel prices are expected to continuing rising.

“Unfortunately oil prices may continue to advance as long as we are at this imbalance of supply and demand and it looks like that could persist,” De Haan said.

The most common U.S. gas price is $3.09 and the average cost among the highest price gas stations in the country is $4.20 per gallon, according to GasBuddy.

Stress in college students: What to know

From paying for school and taking exams to filling out internship applications, college students can face overwhelming pressure and demands. Some stress can be healthy and even motivating under the proper circumstances, but often stress is overwhelming and can lead to other issues. "Stress is there for a reason. It's there to help mobilize you to meet the demands of your day, but you're also supposed to have times where you do shut down and relax and repair and restore," says Emma K. Adam, professor of human development and social policy at Northwestern University in Illinois.
Read Next Story