The gas prices have significantly increased during the past several months, and there are several reasons that caused this increase. First of all, it is necessary to realize that the situation in the world is quite unstable today, and numerous factors influence each other, which manifests in rising gas prices. They are influenced mostly by the oil prices that are determined by global demand and supply.
The numerous crises of the past several years provoked a significant rise in the price of crude oil, which increased the oil prices as well. The global COVID-19 pandemic is one of the first reasons for the increase in oil and gas prices since the international supply chains were disrupted because of it (Patton). At the same time, the demand for oil decreased during the first months of the pandemic since people were afraid of travelling. That is why the oil prices remained quite stable during 2020 and 2021.
The escalation of the conflict between Russia and Ukraine that ended up in the Russian invasion of Ukraine and numerous sanctions against Russia is another reason for the increase in oil and gas prices. Being one of the top three oil producers in the world, Russia feared that the supply of its natural resources would decrease (Patton). Thus, after the demand for oil and gas increased when the pandemic started to fade, and a new and more severe crisis emerged. It was provoked by the war between Russia and Ukraine and the response of the international community to it. To conclude, the increase in oil and gas prices was caused by many factors, but the COVID-19 and the Russian invasion of Ukraine were the severest ones.
Work Cited
Patton, Mike. “The Real Reason Behind Surging Gas Prices” Forbes, Web.