There’s a potential sign gas prices are peaking as Louisiana did not set a new record today for a statewide average gasoline price. It’s at $4.55 for a gallon of regular gasoline, the same price as yesterday. But Associate Director of the Tulane Energy Institute Eric Smith says don’t expect any real relief until the fourth quarter of this year.
“All of the fundamentals say we don’t have enough refining capacity, we don’t have enough pipeline capacity, we don’t have enough new drilling and new development activity,” said Smith.
Smith says the flow of gasoline around the world has also been disrupted because the United States and European Union have bans on Russian oil. Smith says even if the ban ended tomorrow, it would take a while for gas prices to moderate.
“As I said, I think you would see some impacts, but it would be mostly for headlines, not for your pocketbook,” said Smith.
Gas prices are nearly two dollars higher than a year ago. Smith says the Biden Administration’s efforts to suppress oil and gas production is the biggest contributor to the higher prices, but the price at the pump would be high even under the Trump administration’s energy policies.
“Whether Trump was the President, or Biden is the President or some third-party was President, the price was going to go up, with a war in Europe, there’s just no way you can avoid that impact,” said Smith.
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