Gas Prices Soar Amid OPEC+ Supply Cuts and Seasonal Demand

The rising cost of gasoline is affecting road trips across the country, but North Carolina drivers are getting a break compared to the national average. Matthew Metzgar, clinical professor of economics at UNC Charlotte, explained that the single largest driver of gas prices in the US is the cost of crude oil, which typically accounts for 50-60% of the price of a gallon of gas.

Global crude prices are elevated due to ongoing supply cuts from OPEC+ and geopolitical tensions in the Middle East. Seasonal factors also play a role, as summer brings higher prices due to increased travel and the federal requirement for 'summer-blend' gasoline.

Gas station owners adjust prices quickly when wholesale costs change, which can be driven by shifts in oil prices or refinery maintenance. Currently, supply-side constraints are carrying more weight than demand, keeping upward pressure on prices.