Gas Prices Bucking Trend, Going UP in Iowa But There is a Reason
Well, this is disappointing. After the prediction of lower gas prices in Q1 of 2022 last month, we're now seeing the opposite: a full-on rise in costs at the pump in early 2022. Will it be short-lived? Will it be a trend in '22 like it felt like it was in 2021? We do have some answers to these questions.
Gas prices rise thanks to a Russian pipeline
Right now, the average gas price in the state of Iowa is $3.04/gallon according to AAA, with Black Hawk trending lower than the average, and Linn County right at that average, a quick Gas Buddy scan shows you can find gas in Cedar Rapids for as low as $2.99, and in Cedar Falls/Waterloo for as low as $2.89. Still, hardly the dip we'd expected in late 2021 when we were told it would be lower in the New Year.
Still, there's a reason why the prices have gone in reverse and it has to do with... going in reverse actually. Recent turmoil in Kazakhstan and Libya, and according to Reuters, a pipeline that sends gas from Russia to Europe was actually stuck in reverse all weekend. While this mainly impacts Europe, it is likely to have an effect in the U.S. and Canada, as well as tensions between Russia and the West, continue.
As crude oil costs creep up, the nationwide average is expected to increase, though the hope is it's a short-lived price bump. The cost for gas in Iowa back in January 2021 was only $2.26. Despite gas averaging a tad over $3.00, we're still well below our record of $4.26 in July of 2008 so, there's always that for good news!