OPEC+ alliance to boost oil production in bid to lower gas prices

Relief from these record-high gas prices could be coming as the top oil alliance in the world,...
Relief from these record-high gas prices could be coming as the top oil alliance in the world, OPEC, announced it is set to increase oil production. The decision Thursday comes after months of the White House asking them to do so.(Erin Davis)
Published: Jun. 2, 2022 at 4:24 PM CDT|Updated: Jun. 2, 2022 at 10:18 PM CDT
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MONTGOMERY, Ala. (WSFA) - Relief from these record-high gas prices could be coming as the top oil alliance in the world, OPEC, announced it is set to increase oil production. The decision Thursday comes after months of the White House asking them to do so.

“That should take some of that volatility out of the market, it should relax things a little bit should allow crude prices to come down. Which hopefully will allow our pump prices to come down,” said Clay Ingram with AAA Alabama.

Ingram explains that other factors contribute to the high prices, such as summer travel.

“Demand is growing,” he said. “It’s going to be pretty high through the rest of the summer. But hopefully, we can get a little more of supply in flux, globally.”

Another factor specific to only a few states is the gas tax, used to repair roads. Ingram says Alabama ranks in the middle nationally with our 28 cents tax.

“The idea or the theory is that all the stations in the state will immediately drop their prices by 28 cents a gallon,” said Ingram.

Gov. Kay Ivey previously said there were no plans to suspend the state’s fuel tax, but she would continue monitoring the situation.

“A lot of stations will not change their prices at all,” Ingram said. “Which means that they would be making an extra 28 cents a gallon at those stations need profit.”

Ingram suggests Alabamians continue to price shop for their gas to find the cheapest option which could help with market prices.

You can find the low gas in your area on the WSFA website.

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