UT Tyler professor: gas prices will continue to climb this summer
“Things are going to get worse. I don’t see any positive indications right now, so I think the question in, ‘how bad will they get?’”
TYLER, Texas (KLTV) - Pain at the pump has been an ongoing discussion for months, one which UT Tyler Professor of Management Harold Doty said is only the beginning.
According to AAA, the national average jumped $0.25 over the last week and $0.59 cents in just one month.
By August, Doty said Texans should expect prices to reach $5 a gallon, on average. He said the rise in prices is due in part to the pandemic, which also lead to the federal government slowing down on drilling permits, but most recently; the war in Ukraine.
“The sanctions against Russian refined goods,” Doty said, “and that’s really what’s driving up the price of gasoline more than crude oil prices right now.”
Doty said the prices will only get worse once you factor in, “The first big hurricane to blow through the Gulf of Mexico could be the tipping point, so it shuts down refining capacity.”
Also, “Other parts of the world, especially China are beginning to come out of COVID restrictions so there’s an additional hidden demand increase out there that really aren’t factored in to our models very well right now so again that’s upward pressure and not good news for the American consumer.”
He adds there are too many variables when it comes to predicting relief. “Anybody who is trying to predict, we are all looking in to a crystal ball, but the future is cloudy.”
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