Deepika Agrawal 
Different modes of transportation like buses, airplanes, boats, ships, trains and others are used in the US on a daily basis for mobility of themselves and essential goods across the country. However, during the first months of 2021, an increase in the prices of gasoline and diesel has has had a negative impact on the prices of the necessary products such as eggs, bread, milk, and even clothes which are delivered in the stores by trucks that use diesel fuel, as per a study by Consumer Energy Alliance. This has in turn impacted the American family budgets due to underlying inflation pressures. It is adding more burden in spending plans of the households.
A portion of the increased costs can be attributed to global factors like conflicts and instability but much of it is due to the regulations set by the federal and state authorities. These regulations limit the production and provision of energy domestically, and hence, make the costs of extraction and transport more expensive . Therefore, it is expected that, as summer creeps in and lasts through the early fall, gasoline and diesel prices will increase further, which would increase burden on households, small businesses, and communities.
The US transportation industry relies heavily on oil and gas resources. As per the recent figures of the US government, by the year 2022, the US transportation systems have used a total of 27% of the entire energy capacity of the country. The fuels consumed include – gasoline, diesel, jet fuel, biofuels, natural gas and electricity. Gasoline is the most commonly used fuel. In 2022, petroleum products provided 90% of the total energy used to power these modes of transportation.
Various other factors determine the price of regular gasoline, such as the cost of crude oil on global markets, refining costs, distribution and marketing as well as federal, state and local taxes. Interestingly, the trucking industry requires nearly 45 billion gallons of diesel and gasoline every year to keep the logistical operations afloat. When the price of fuel goes up for the trucking industry, consumers have to pay more for everything delivered by them, thus messing up household budgets.
American travelers are an important element for the US economy. Nevertheless, with current fuel prices making 61% of Americans change their mind about summer trip, the result is going to be short travel distances, few and less destinations, and less money spent overall. Even cruises and airplane tickets will be affected, thus impacting travel and tourism.
In an ideal scenario, affordable, reliable, and sustainable energy to meet daily transportation needs will make it possible to provide the needed quality goods at a cheaper cost. Domestic production is a critical component in achieving this objective of keeping energy affordable for the American consumer. However, external factors, and regional and federal obstacles, as well as stringent assertions from anti-energy organisations, thwart efforts to realise the energy potential.
Thus, if this continues, American families and small businesses in could experience excessive fuel prices than they ought to, further increasing their financial burden.
