Gas prices reach new record high at more than $5 a gallon for regular

Like thousands of others in North Central Ohio, Sebastian Rall stared in shock as he refueled his car with the most expensive gasoline he had ever purchased.

"There's not much I can do about it," he said, the dollar signs spinning unreadably next to him.

By Wednesday afternoon, the national average price for a gallon of regular unleaded gasoline was $4.955, according to data provided by AAA.

It was a new national record, and was 35 cents higher than the national average just three weeks before.

The record national average price for a gallon of diesel was also set Wednesday at at $5.719.

Drivers across Ohio were paying $5.061 Wednesday for a gallon of regular gasoline and $5.852 for diesel.

Unleaded prices surged to $5.092 in Ashland County, $5.075 in Richland County and $5.067 in Crawford County.

'I'll live, I guess'

For Rall, the record prices have changed the way he plans his days.

"I definitely think a lot more about when I'm going out," he said. "I skate board around town a lot more."

He lives in Crestline, and often gives rides to friends. He's had to tell them he needs a little more gas money than normal, since fuel costs have more than doubled in the past two years.

It wasn't long ago he would pull into whatever gas station was closest, whenever it was most convenient for him. He didn't care about costs back then.

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"Now I pay a lot more attention to the prices at different places," Rall said. "If I see it like, three cents lower, then I'm like, I've got to go get that."

He's concerned how sustainable the increased prices can be. He said nobody is getting a raise to cover the extra costs, making it more expensive just to go to work. He doesn't know how much of it the economy can handle.

"Someone told me it was supposed to be even more expensive over the winter," Rall said. "I don't know. I'll live, I guess."

'The shock has hit'

Entertainment is one of the first things affected by increased prices at the pump. Few notice that as much as Ed Gutchall, who works as a disc jockey for weddings and other events as well as performs a trivia night at bars and restaurants across the region.

He said wedding planners have yet to be deterred by the high gas prices, but some smaller crowds at other events recently have made him wonder.

"It's been hit and miss, and of course that depends on the weather, too," Gutchall said.

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He doesn't see the prices falling soon, which makes him wonder how things will unfold the rest of the summer.

"The shock has hit, but I don't think the full effect has hit yet," Gutchall said. "All of this is going to start changing in the next three to four weeks."

All of his clients are seeing a higher cost of goods, which forces them to either absorb the increase, or pass it along to their customers.

Could benefit the region

Guests are now paying more to drive to a location, then more once they get there.

"I think what's really going to end up hurting is the restaurants," Gutchall said.

Fortunately, the region has a lot of campgrounds and other destination locations that he thinks might benefit from the high price of gas — locals will keep their entertainment dollars in the area instead of driving to Cleveland or Columbus.

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"It may turn around the opposite way," Gutchall said. "People in the area might stay in the area, so I'm not sure which way this will go."

Either way, he's going to keep checking with his clients to make sure events are profitable for them.

"I try to work with them," Gutchall said. "I don't want them to lose money, because if they lose too much money then we're done."

What makes gas prices higher?

While gas prices are eclipsing all-time records across the United States, the cost to fill up depends almost entirely on where you live, according to the Columbus Dispatch, a sister paper of the News Journal.

"There are different regional markets for fuel," explained Kimberly Schwind, director of public affairs for AAA Ohio.

Everything from proximity to oil refineries to an individual gas station’s fuel supplier can move prices.

"Different parts of Ohio are going to get their gas from different suppliers and different locations," meaning they pay different shipping costs, Schwind said.

The South has numerous oil refineries, which means the petroleum sold in that region of the country has a shorter trip to the point of sale.

On the other side of the price coin, the West Coast is far from most refineries, and states like California have high gas taxes and strict environmental regulations. California motorists have paid more than $6 per gallon for weeks.

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But prices are not merely the result of one or two factors, Schwind cautions. Regulations, supply chains and local gas taxes are only a few of the forces moving the cost at the pump.

"Here in the Great Lakes, you've probably noticed that prices are quite a bit higher," said Patrick De Haan, head of petroleum analysis for GasBuddy. "A lot of the reason is that gasoline supply in the Midwest is at its lowest level, seasonally, on record."

The supply problem is the result of refinery shutdowns and heightened demand in other regions of the country, he said.

Six refineries closed for various reasons in 2020 and 2021, according to the U.S. Energy Information Administration. Those refineries include the Dakota Prairie refinery in Dickinson, North Dakota; the HollyFrontier refinery in Cheyenne, Wyoming; and the Philadelphia Energy Solutions refinery in Philadelphia.

But experts say no single factor explains the price difference between two regions in the same state.

“The cost of doing business is higher in some of those larger areas,” De Haan said, referring to major metropolitan areas like Greater Columbus.

But he said a multitude of other factors contribute to the price disparity. It could come down to individual gas stations.

"If a gas station bought gas three days ago at a far lower price," it will have a lower sticker price, De Haan said.

When will oil prices go down?

Motorists are unlikely to experience relief in the near future, experts say.

Sanctions against Russia, which supplies nearly 10% of the world’s crude oil and continues its unprovoked invasion of its neighbor Ukraine, impacted the flow of oil to the rest of the world.

The war is likely to drag on for months.

But the problem goes beyond the European conflict, De Haan said.

"I could talk for an hour and not get through all the issues," he said.

Even as supplies are stymied, Americans are still driving in record numbers, putting upward pressure on prices from both the demand and supply sides, De Haan said.

"COVID affected demand in a significant way, which caused oil to cut production in a significant way, and even with refineries shutting down because of a lack of consumption, everything has changed," he said.

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Demand is back with a vengeance as Americans return to offices and take summer vacations.

"Since early May, we've been hitting new records frequently here in Ohio and across the country," Schwind said.

Ohioans should anticipate even more record-breaking days before prices start to come down, she said.

Patrick Cooley of the Columbus Dispatch contributed to this report.

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This article originally appeared on Mansfield News Journal: Ohio gas prices hit record high at more than $5 a gallon for regular