Rising Gas Prices
- The Lawrencian
- May 1
- 3 min read
Written by: Lianna Bakaradze-Marin (‘28)
Over the past couple of months, drivers everywhere in America have been plagued with the duties of having to pay ridiculous amounts of money to fuel their vehicles. Gas prices haven’t spiked at this rate since the summer of 2022 during the Russia-Ukraine conflict, where prices for gasoline reached over $4 a gallon. Lots of confusion and concern have arisen in the American people, while many are left questioning how long until prices normalize? How intense is its effect on the economy? And how can people save money while having to deal with this kind of inflation? Well, here’s some insight that might be useful.
First, a little background on the root of the cause. The blockade of Iran’s ports is the major root of prices rising and an effect of the US-Israeli conflict with Iran. The Strait of Hormuz, located between the Persian Gulf and the Gulf of Oman, is a crucial waterway for a chunk of the world’s oil and gas supply to pass through the strait and into the hands of the markets and gas stations. Since the strait has been blocked, there’s a supply shortage, which causes spikes in prices for gas and oil.
What does spiked gas prices mean for the economy? Some sources, such as the Stanford Institute for Economic Policy Research (SIEPR), claim that inflated gas prices and the closure of the Strait of Hormuz will not bring the economy into a recession, stating “Some readers may recall that in the 1970s, oil shocks stemming from the creation of the OPEC cartel caused the economy to shrink. This time around, however, forecasters think that even a prolonged closure of the Strait of Hormuz will not bring about an economic contraction”, due to the fact that people are less dependent on oil.
While society may not experience an economic recession, other sources, like PBS News, state that this spike in inflation will continue for numerous amounts of months and that the effect that higher gas prices have on different parts of consumer’s spendings can have potential to slow down some areas of the economy, explaining, “At least in the short run, many Americans can only make limited changes to their daily driving habits, which are largely determined by where they live, shop, and work. As a result, most people will pay higher prices for gas, and potentially cut back elsewhere.”
How can we, as consumers, save money despite inflated prices? While gas is a fixed expense for drivers and must be paid for, there are a couple ways to save a couple dollars here and there. First, people should look into the grade of gas that would most benefit their car. While some manufacturers will try to recommend a higher octane of gas, some will end up paying more rather than focusing on the minimum of what their car needs. Next, minimizing wasting fuel by avoiding idling in one’s car, minimizing AC usage, and reducing one’s speed while driving. Last, simply walking, biking, or carpooling is always a foolproof, not to mention more sustainable, method of avoiding paying for gas.
Although some regular consumers are struggling to scrounge up extra money to set aside to adapt to new inflating prices, having some insight on the whys, hows, and whats of the situations going on in the world can aid in understanding the causes and effects. Through simply being aware and educating people on how they are impacted from matters like these— even if they are a beginner driver at LHS or an older, more experienced, driver of the community, can help them take action and make smarter economic decisions and predictions as a result.
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