Gas Prices Soar as War-Driven Profits Fuel Oil Industry
Gas prices have been rising across the Central Savannah River Area (CSRA) as global tensions and high oil profits contribute to increased costs. In Augusta, the average price of regular gas is $3.80 per gallon, down from $3.88 a week ago but up from $2.93 a year ago. Drivers in Aiken and Edgefield counties are paying even more, with an average price of $3.77 per gallon.
Nationally, the average price for regular gas has climbed to $4.11 per gallon, about $1 more than this time last year. The spike is attributed to the war involving Iran and the US, which has restricted oil traffic through the Strait of Hormuz. As a result, crude prices have surged above $100 per barrel.
Major oil companies like Chevron have reported massive profits due to tight supplies and high demand for jet fuel and diesel. Between April 1st and June 30th, Chevron's profits nearly quadrupled to $12.07 billion, up 385% from the same quarter last year. Six of Europe's largest oil companies posted a total profit of $22 billion in the first quarter, a 43% increase from the same time last year.
Professors Tom Seng and Timothy Fitzgerald attribute the high profits to refineries that have ample crude oil supplies making money hand over fist. 'The return on refining, on a percentage basis, has skyrocketed,' said Seng. 'If you're a company that owns a bunch of refinery capacity, things look pretty good.'