Dumbest question of the year: why are gasoline prices higher than in 2019?
Here’s the dumbest question of the year, I think…. if we believe Econ 101, prices are generally determined by supply and demand.
Gasoline prices in 2019 averaged $2.60 (eia.gov). Right now it is about $4.50 per gallon (also eia.gov), though in San Diego last month it was $6.999:
The supply of dinosaur blood doesn’t change all that much from year to year. Demand should actually be lower right now compared to 2022 due to (a) some Americans working from home, cowering in place, etc., and (b) airline staff shortages reducing the number of planes flying. Statista says that worldwide oil demand is slightly lower right now than it was in 2019.
If both supply and demand are roughly the same as in 2019, why is the market-clearing price different?
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