Gasoline Prices Reflect Global Events--'Energy Independence' or Not

May 11, 2022--Researched by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Record-high retail gasoline prices in the U.S. account for the bulk of consumer inflation, spoiling the myth that a world leader in fossil fuels production can become isolated from global events. A gallon of regular, unleaded gasoline recently hit $4.37, the highest price ever. Diesel prices, too, reached a milestone at $5.55 per gallon. And yet, federal estimates show that U.S. crude oil production is on pace to set a record by next year. The U.S. also is becoming a world leader in natural gas production and in exports of liquefied natural gas (LNG). Gasoline prices, along with the price of most consumer goods, were accelerating on the back of the resurgent demand that greeted the post-vaccine stage of the COVID-19 pandemic. The Russian war in Ukraine only added to the pain.