Since 2014, new Mexicans have experienced high gas prices. What is the solution?

It is a problem that many new Mexicans notice when they are pumping. “It’s very visible. You can feel it. In general, I think inflation is a terrible thing, ”said Will Schaefer. Gas prices have risen sharply since last year. According to AAA, in the land of magic, the average price per gallon is $ 3.30. “The average gas price in the United States is 3.41 gallons, up about 61 percent from last year,” says Rally White, associate professor of finance at New Mexico. So how did we get to this point? White explains. “First of all, gas prices in the United States are currently seven years higher. The economy reopened, and Americans began to drive more. Third, supply issues are sustainable this year. So now, even though oil is back and our produce is back in many ways, it is not where it was before the outbreak, White said. But President Joe Biden announced Tuesday that he plans to try and reduce prices. “I think it makes sense to do so if inflation continues to rise,” he said. “It does not bring us back to the level of gas prices we have seen in history.” “What is the solution to this high gas price?” Are long-term solutions a supply demand and the question is how much product will we have compared to our real needs? At the end of the day, the numbers are important, “White said.

It is a problem that many new Mexicans notice when they are pumping.

“It’s very visible. You can feel it. In general, I think inflation is a terrible thing, ”said Will Schaefer.

Gas prices have risen sharply since last year. According to AAA, in the land of magic, the average price per gallon is $ 3.30.

“The average gas price in the United States is 3.41 gallons, up about 61 percent from last year,” says Rally White, associate professor of finance at New Mexico.

So how did we get to this point? White explains.

“First of all, gas prices in the United States are currently seven years higher. The economy reopened, and Americans began to drive more. Third, supply issues are sustainable this year. So now even though oil is back and our produce is back in many ways, it is not where it was before the outbreak, ”he said.

But President Joe Biden announced on Tuesday that he planned to release 50 million barrels of oil from the US strategic reserves and reduce the price of the pump.

“I think it makes sense to do so if inflation continues to rise,” Schaefer said.

The White method has a very small effect on price and only in the short term.

“It will not push us back to the level of gas prices we have seen in history,” White said.

So what is the solution to these high gas prices?

“The question of long-term solutions will be supply-demand and how much product will we have compared to our real needs? Those are the important numbers at the end of the day,” White said.

White says the highest price we are seeing is a double-edged sword for New Mexico.

While hitting notebooks, New Mexico is good for the state because of rising gas prices in the United States, the world’s third-largest oil producer.

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