Gas prices are on the rise around the Riverbend, but the region isn’t alone. Factors like historic inflation and a possible Russian invasion of Ukraine mean gas prices are rising across the globe, with no stability yet in sight.
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There is currently a 50-cent price difference between gas prices in Jerseyville ($3.69 per gallon) and Alton ($3.19). Surrounding communities like Godfrey and Edwardsville land somewhere in the middle, typically around $3.50 per gallon.
Despite the fluctuation in local prices, Riza Demirer, professor of Economics and Finance in SIUE’s School of Business, said the price of gas depends more on global factors rather than local factors.
“Gas prices are directly affected by global energy prices and crude oil prices,” Demirer said. “Crude oil is a global commodity that is priced in global markets, not in the U.S.”
That being said, Demirer said the Biden administration doesn’t actually have that much control over gas prices.
“No president will have control over a global commodity,” Demirer said. “This is a global trend. You cannot fight global inflationary trends, you cannot fight global geopolitical uncertainties which might affect a strategic commodity like crude oil. So I don’t think it’s the administration to be blamed about this … these are things beyond a particular administration.”
As far as when we can expect prices to stop rising, Demirer said it depends on what the Federal Reserve does - if they increase interest rates, that could lead to price stabilization, including gas prices. But when that happens will likely depend on what Russia does as global tension brews over a possible Russian invasion of Ukraine.
“If Russia invades Ukraine, that’s going to be a totally different story. Geopolitics is going to take over, that’s going to impact supply expectations … which will indirectly affect gasoline prices,” Demirer said.
As far as what consumers can do, Demirer said to spend wisely and carefully.
“There’s a lot of uncertainty that we’re facing, so it’s the time when we should be extra careful in our spending habits,” Demirer said.
For updates on gas prices in your community, use the Riverbender.com Gas Map.
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