President Joe Biden has issued a presidential executive order banning the importation of Russian oil into the United States, according to the White House. The ramifications of this for drivers will be examined in further detail later on in this section.
Craig Stephenson is currently the President of Cary Oil, a wholesaler that sells gasoline to over 300 gas stations in North and South Carolina, according to his LinkedIn profile.
The restriction on Russian oil imports from the United States, according to his remark, will almost certainly result in higher gas prices in the near future.
“While we are unable to specify exactly where that material originates for our stations and our consumers,” Stephenson maintains that it has an impact on the pricing since “it is a global market price that has been defined at a global level.”
According to Stephenson, Cary Oil paid around $3.70 per thousand cubic feet of natural gas at the wholesale level on Tuesday, representing a nearly 50-cent increase over the previous week’s price of natural gas. According to him, the price fluctuates between 8 and 10 cents per week on average, depending on the situation of the market at the time.
Because the gas you’re buying had most likely been sitting at the pump for a few days before you could purchase it, it had to first pass through a refinery before it could be sold to you. It takes approximately two weeks for Cary Oil’s goods to get from the refineries where they are purchased to the distribution centers where they are sold.
In light of rising crude oil costs, you might ask why gas stations are increasing their prices in tandem with them when the prices of crude oil will have little influence on your automobile for several weeks.
“The difficulty,” says Stephenson, “is that, even though their inventory cost is less than the replacement cost in a rising pricing environment, they are compelled to purchase the replacement cost at the then-current market price.” As a result of rising wholesale prices, companies must raise their pricing in order to prepare for the next delivery that they will get. As a result, they must raise their prices whenever wholesale prices rise.
According to the American Automobile Association, gas prices in the United States have reached an all-time high (AAA).
Drivers were asked by CBS 17 how much longer they could withstand a price increase before they were detained and interrogated.
According to the driver, Connie Jones, it appears to be traveling in the direction that we are currently looking in: “It appears to be moving in the direction that we are currently looking in.” There is a total cost of $4.64, which is a substantial amount of money. According to the author, “you know, that’ll definitely keep me at home for a few days.”
Stephenson believes that if additional countries follow the United States’ and United Kingdom’s lead in banning Russian oil, this will have a big impact on how much higher prices will grow in the future.