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A barrel of crude topped $130 last week and now sells for less than $100. Gas prices follow oil quickly on the way up, slowly on the way down.
Analysts expect drivers to switch sooner or later. But pump prices alone won’t drive them to.
There are several reasons. For one, the state is highly dependent on foreign crude oil.
The people and equipment they need are already hard at work.
Bus and train ridership has dipped since the start of the pandemic. High fuel prices, spurred in part by the war in Ukraine, may change that.
And they’re passing the cost on to their customers.
The savings would average about $100 a year for drivers, and that’s assuming all the savings would get passed on to consumers.
If several Democratic lawmakers have their way, consumers could soon get a break from a tax of 18.3 cents per gallon.
Biden’s ban on Russian oil may raise already high fuel prices. Though recessions followed past runups, this time may be different.
Gas prices are based on oil prices, and traders are getting nervous about a potential ban on imported Russian oil.