Gas prices are at an all-time high and the average price in the country is close to $ 5 per gallon. The government may be working hard to find solutions to ease the pressure on the pump, but Goldman Sachs says the future looks even worse. Economists in the group of investment banks predict that prices will fall by about 34% by the end of this year.
Accordingly Business Insider, the firm said on Tuesday that it expects the average price of a barrel of oil to be around $ 140 by the end of this year, but said it would feel like $ 160 for a consumer at the pump. The current price of a barrel increased by 34.45% from $ 119.
Of course, this could bring the national average to $ 6.70 per gallon. Remember that we are talking about the usual 85 or 87 octane gasoline. Currently, the national average premium for most cars is $ 5.55. A 34 percent increase in this price is the new total of $ 7.43.
Related: New York will suspend gas tax for the rest of 2022 to ease pump pressure
“When demand reaches a seasonal peak, prices are likely to peak this summer,” said Jeff Kerry, chief commodity strategist at Goldman Sachs. Interestingly, one of the main problems with high gas prices is not the war, nor low oil production.
Instead, much of the crisis stems from a lack of refining capacity or the ability to turn crude oil into gasoline and diesel. In fact, the analysis says there is an “unprecedented processing deficit” right now. The new fuel crisis will require the entire system, including the states that have abolished the fuel tax.
Last week, we announced in New York that a gas tax that would last until the end of the year and ultimately bring in more than $ 500 million to the state had been lifted. Even such decisions do not yield significant results, given that they deduct less than 0.50 cents from the total price.