Treasury Department: Gas Prices Could Rise This Winter

By Brandon Hansen / For the Nisqually Valley News
Posted 9/20/22

The U.S. Treasury Department announced last week that gas prices may rise again this winter. Prices could rise due to the European Union largely stopping its purchase of Russian oil and banning …

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Treasury Department: Gas Prices Could Rise This Winter

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The U.S. Treasury Department announced last week that gas prices may rise again this winter. Prices could rise due to the European Union largely stopping its purchase of Russian oil and banning provisions that allow Russians to ship oil by tanker.

Some experts think gas prices could spike by as much as 60% this winter.

Gas prices as a whole have been falling across Oregon and Washington, matching national trends, according to GasBuddy’s surveys of prices. Prices have decreased for 13 straight weeks.

Last week, prices fell on average by 4.3 cents per gallon in the state to an average of $4.58, while the national average sat at $3.67, accounting for a drop of 7.6 cents last week.

Washington has seen the second-largest drop in price in the nation in previous weeks, ranking behind Montana and sitting just ahead Florida, West Virginia and Oregon.

Seattle has an average gas price of $4.79, which is 5.6 cents lower than a week ago. Prices in the Emerald City are 19.5 cents lower than a month ago but 80 cents higher than a year ago.

In Yelm, the price of gas at the 608 W. Yelm Ave. Shell station was $4.79, and the Mobil station at 16518 Yelm Ave. S. has a gas price of $4.99, according to gasbuddy.com.



Nationally, the price of diesel dropped 5.5 cents last week to $5.01 per gallon.

California has the highest average gas price, which sat at $5.32 and $6.22 for diesel.

According to the Treasury Department, a western price cap proposal could balance curbing Russian oil revenues that help fund its war in Ukraine while allowing for some access to hold down gas prices. Setting a price that is appealing for other countries might cause Russia to sell to China and India, in which case western countries would charge higher service costs for Russia and turn to countries selling less expensive oil.

“It’s something that we’re trying to put in place to avoid a future spike in oil prices,” Treasury Secretary Janet Yellen said during a Sunday press conference.

Russia is the world’s third-largest oil producer and has threatened to not sell to countries using the western price cap. Russia has also shut down a major gas pipeline to Europe, claiming it needs repairs, as winter approaches.

Gas soared to an average high of $5 in the United States earlier this year but has since fallen to $3.71. To combat the spike in gas prices, the country released additional gas from its reserves into the market, and a drop in drivers also helped bring down the price.

To cope with a rise in gas prices, AAA suggests significant lifestyle changes like driving less, carpooling and combining errands.

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