Login



Peak Oil is You


Donate Bitcoins ;-) or Paypal :-)


Page added on February 14, 2012

Bookmark and Share

Gas Prices are Rising fast

Consumption

American motorists have seen the national average for a gallon of regular gasoline rise above $3.50 a gallon on just three occasions, but it has never happened this early in the year. Analysts say it’s likely a sign that pain at the pump will rise to some of the highest levels ever seen later this year.

In 2008, average gasoline prices had hit inflation-adjusted records nationally by the summer, but they didn’t climb above $3.50 a gallon across the U.S. that year until April 21, according to the AAA Fuel Gauge Report. It happened again last year, but not until March 6.

But $3.50 a gallon gasoline is already here in 2012, weeks before refineries typically shut down for springtime maintenance, and weeks before the states switch from their less expensive winter blends of gasoline to more complicated and pricier summer blends.


» The latest on traffic, delays and road construction delivered to your mobile phone. Text TRAFFIC to 52270! Message and data rates apply. Text STOP TRAFFIC to cancel, text HELP for help. Click for terms and conditions.


“This definitely sets the stage, potentially, for much higher prices later this year,” said Brian L. Milne, refined fuels editor for Telvent DTN, a commodity information services firm. “There’s a chance that the U.S. average tops $4 a gallon by June, with some parts of the country approaching $5 a gallon.”

Today, for example, the national average stands at $3.511, up from $3.480 a week ago, according to the AAA report, which gets its figures from prices compiled by the Oil Price Information Service.

The average in Pennsylvania is even higher: $3.63. According to GasBuddy.com, the cheapest gas in the Allentown area as of Tuesday was $3.49, at USA Gas on West Tilghman St.

There are plenty of reasons for the high prices, and lots of reasons to fear a big price spike in the spring, said Tom Kloza, chief oil analyst for OPIS.

“Early February crude oil prices are higher than they’ve ever been on similar calendar dates through the years, and the price of crude sets the standard for gasoline prices,” Kloza said, later adding, “We’ve lost a number of refineries in the last six months (to permanent closure). Some of those refineries represented the key to a smooth spring transition from winter-to-spring gasoline.”

Some cities, like Los Angeles and New York, are already closing in on $4 a gallon, said Patrick DeHaan, senior petroleum analyst for GasBuddy.com.

The current national average is also 38.3 cents a gallon higher than the old record for Feb. 13, which was set last year.

Morning Call



2 Comments on "Gas Prices are Rising fast"

  1. DC on Tue, 14th Feb 2012 6:52 pm 

    O noes, the price of gas went up a nickel! Amerika is doomed. Better fire off some more cruise missles, drop a few bombs on some terrorits(real or imagined dont matter), change a regime or two, you know, SOP. Once the price of amerikan gas goes back down to …whatever you think it should ..25cents a gallon? Its off to wall-mart so you can save 3 dollars on a plastic hair-dryer.

  2. Kenz300 on Tue, 14th Feb 2012 7:40 pm 

    Rising demand from China and India have a huge influence on oil prices. Even a recession in Europe can not offset the increase in use by 2 billion people. China and India continue to grow their economies by 6-9% a year. That takes a lot of oil.