The rising cost of gasoline is a significant financial burden affecting millions of households across the country. However, there may be some relief in sight, as some experts say costs could fall next year. In the meantime, if need be drivers might be able to utilize a payday loan advance near them to fuel up their cars to make their commutes to work until their next paycheck. As of June 20, the average cost for a gallon of regular gasoline was $4.98, according to the AAA Fuel Gauge Report. While prices can range depending on the region, they are currently the most expensive in the West and Northeast, and the cheapest in the South.
Meanwhile, a projected decline in consumer demand for gasoline as well as falling crude oil prices could cause average gas prices to decrease significantly during the next 12 months. Current projections from the U.S. Department of Energy put prices at just $4.71 per gallon by the middle of next summer.
How Are Gas Prices Determined?
There are numerous different variables that determine how much drivers pay at the gas pump. According to the American Petroleum Institute, these can range from supply and demand to political instability in oil producing countries.
While the price of a gallon of gas is ultimately determined by the price of a barrel of oil, there are other expenses too. The API says 14 percent of prices are set by refinery costs, while 15 percent go toward transportation and selling the gasoline. In addition, both federal and state tax rates also have an impact, which can help explain the significant price differences based on regions of the country.
More Fuel Savings In The Future
To address the cost of gasoline and new government emissions standards, car manufacturers are expected to make vehicles much more fuel-efficient over the next decade.
Specifically, the government has an initiative to implement standards to the average manufactured car has to get at least 54.5 mpg by 2025. Not only will this help American households save large sums of ever year, it will make them more conscientious about the environment as well.
In a recent poll conducted by the Consumer Federation of America, 88 percent of Americans agree that they need to reduce the rate at which the country consumes oil, and feel changes to vehicles are a good way to achieve this goal.
Nearly 86 percent (Florida, USA) of those polled said the primary reason they feel this way is to save money, rather than over environmental concerns. Already, a majority of respondents said the next car they purchase will get at least seven more miles per gallon than their current vehicle.
However, the technology required to improve a car’s gas mileage is often quite expensive, and could yield higher vehicle prices as a result. In spite of the anticipated car price hike, consumers said they are willing to spend more on a vehicle up front if it meant they would save on gasoline in the future.
New advancements, including hybrid and electric-powered cars, are already starting to become social norms in American society. While it will still take some time for these trends to catch on even more, the ball appears to already be rolling. As these trends continue to make headway across the country, consumer sentiment toward fuel-efficient vehicles could strengthen even more in the near future.…