Refining capacity gap and tariffs push up gas prices, affecting consumers

Gas prices have not yet fallen despite the reopening of global shipping lanes, Tony Katz said on WIBC 93.1 FM.

Katz attributes the lag to a lack of new refining capacity; the U.S. has not built a major refinery since 1977, leaving infrastructure bottlenecked. Dr. Matt Will of the University of Indianapolis noted that American engineers have doubled output at legacy sites like Beaumont, Texas, but regulatory red tape has blocked new builds.

The shortage has already affected consumers, with PepsiCo raising prices on staples such as Doritos and Ruffles, a direct fallout from higher diesel shipping costs and tariffs on packaging and agriculture.

Read the full story at wibc.com.