Share to ClassroomWar Makes US Gas Very Expensive
The war with Iran is making fuel prices rise fast in the United States. The average price of gasoline reached more than $4per gallon this week. In California, drivers pay almost $6, and some gas stations in Los Angeles charge up to $8. Big delivery companies are now adding extra fees. Amazon added a 3.5% fuel surcharge— an extra charge— on sellers. FedEx and UPS (United Parcel Service) added surcharges of more than 26%.
The International Energy Agency (IEA) says this is the biggest oil supply problem in world history. About half the price of gasoline comes from the cost of crude oil— oil before it is processed. Gas station owners say they are not making more money, even though prices are higher. The price they pay for fuel changes many times each day. For online sellers, the extra shipping costs add to other costs they already face.
Americans are trying to save fuel in different ways. A grocery store worker saves fuel by coasting— rolling without engine power— on downhill roads. A music manager now rides a motorcycle to work some days. A car service owner uses her electric vehicles more often. Experts think 30% to 40% of Amazon sellers will pass on the extra costs to customers, making everyday products more expensive.
