Government Considers Limiting Fuel Export Amid Surging Gas Prices

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Gas station
Photo by Mehluli Hikwa on Unsplash

The gasoline prices have been shooting to new heights in recent weeks resulting in gallon being priced at $5 on average across the nation. According to Bloomberg, the government is considering taming this price surge with a limit on fuel exports.

Reportedly, the discussions about imposing limits have picked up in recent days, although there is no indication when the decision might be made. The sources close to the situation claim the limit might be substantial, although the complete ban on exports is out of the question.

The US Energy Information Administration data shows that the United States has been exporting, on average, a total of 755,000 barrels of gasoline a day in 2022. This represents a substantial increase compared to the same period last year when the figure was 681,000 barrels a day.

The government has been weighing several options in an effort to contain the gas prices. Still, there have been no definite moves made yet, and the prices are not expected to come down anytime soon.

Some experts claim that these high gasoline prices might cause “demand destruction.” There are some indicators supporting this theory, as the demand for gas has been down around 2 percent compared to the same period last year.

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