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Bloomberg: Gasoline shortage causes pump prices to rise in New York and Maine



(Bloomberg) — Gasoline shortages rippling across the East Coast are driving up pump prices from New York to Maine, potentially frustrating the Biden administration’s effort to rein in energy costs ahead of the election.

Overnight, pump prices in the Northeast rose against the downward trend observed across the rest of the nation. The reason? Some fuel terminals in the Northeast are running out fuel because imports slow due to a global energy crisis. 

With the election only two weeks away, high pump prices have become a political problem for Democrats. Despite the Biden administration claiming its success in lowering gasoline prices, prices are still significantly higher than they were a year ago. Prices in swing states are at their highest, which could impact which party controls Congress. 

The US is a huge gasoline producer but most of the fuel produced on the Gulf Coast refinery hub is exported to Latin America. Due to infrastructure constraints, the East Coast is dependent on imports from abroad. But those imports have slowed since Russia’s invasion of Ukraine disrupted energy supplies across Europe and rerouted flows elsewhere. 

According to Vortexa data from Bloomberg, New York’s gasoline shipments and blending components are 25% lower this October than last year. The New York Harbor region supplies are at their lowest level in a decade for this period of the year.

©2022 Bloomberg L.P.

 

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