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Fuel Costs and Your Next Move

Fuel Costs and Your Next Move

Can any of us remember a time that someone didn’t complain about the prices of gas? Any small price hike has every older American sharing they remembered when gas was less than a dollar per gallon. Those good ol’ days are long past, and recent world events have put American consumers in the middle of sky high gasoline costs with little relief in sight. So how did we get here, where are we going, and what affect does it have on your next move?

The U.S. Energy Information Administration (www.eia.gov) shares the four factors that determine the price of fuel

  1. The cost of crude oil. Crude oil is the petroleum product that is refined to make gasoline and diesel fuel. When the price of crude oil increases, so does the cost of fuel. Russia’s invasion of Ukraine has resulted in drastic but necessary economic sanctions. They were put in place because half of the Russian government’s budget is made up of revenues from oil production supply. Russia is the world’s third largest oil producer. Any disruption of Russian oil delivery will drive up crude oil prices across the globe. A complicated web of energy contracts makes replacing Russian oil more difficult, so oil prices will likely remain high for the near future.
  2. Consumer demand. The COVID pandemic shut the doors of the world, literally. When we stayed home, demand for gasoline went down. Now that we are back in business, the demand for gasoline is at its highest in the last few years. The spring months also increase demand, and our upcoming switch to summer gas blends will tick those gas prices up even more.
  3. This is a factor that may not first come to mind. Refining costs factor into what we pay for gas, so you will likely find that gas prices are less expensive in areas where oil refineries are close and plentiful. The farther gasoline has to travel, the more expensive it will cost at its final destination. Different states have different environmental laws, so gas in California will cost more because the blend has requirements unique to the state. Energy taxes vary greatly state to state. Here in the St. Louis area, Illinois consumers can pay up to 50 cents more per gallon because taxes in that state are greater. Location factors also include cost of living, employee wages and more.
  4. The value of the dollar. In our global economy, crude oil is priced in U.S. dollars. When the value of a dollar decreases, crude oil prices increase. High dependence on crude oil exports subject a nation’s economy to uptrends and downtrends in the energy market, and this impacts global currency rates. The combination of the balance of industrial commodities on changing political climates and possible inflation and deflation leave economists busy and regular Americans scratching their heads.

Fuel costs are quickly making their mark on the consumer wallet. We take shorter trips and spend more on flights. Grocery prices are going up. What about costs associated with moving? If you are planning a cross country move, it is very difficult to predict the cost of fuel for your U-Haul. You’ll be paying different amounts for every town, county and state you haul your stuff through. If you are thinking about saving money on a local move and foregoing a truck rental, think about the fuel cost of twenty trips in your SUV from your old apartment to your new house. It is not just the money you are spending, it is your time and energy, too.

ABC Quality Moving & Storage won’t spring surprise charges on you. Call us today for a quote on your next local or long distance move. Leave the stress and labor to us, and let us deal with those fluctuating fuel prices. ABC Quality Moving & Storage gives you upfront pricing that is both affordable and competitive. Our expert team lets you concentrate on establishing your new life in your new home. Start the move process today by calling ABC at 888.983.MOVE.