End Of Winter Drives Nation's Gas Prices Uphill
If you've been behind the wheel recently, you already know gasoline prices are up.
The national average price for regular gas rose to nearly $3.75 a gallon Tuesday, according to AAA's Daily Fuel Gauge Report.
"Retail prices have gone up for each of the last 33 or so days -- dating back to about Jan. 17," says Denton Cinquegrana, executive editor at the Oil Price Information Service.
He estimates prices will rise a bit more in coming weeks, but he doesn't expect them to go above $4 a gallon like they did in the summer of 2008.
Cinquegrana says prices rise near the end of winter every year. As refineries switch to summer blends to reduce smog, they shut down units and work on maintenance. Traders worry there won't be enough supply so they start bidding up prices.
Cinquegrana says this time around it's happening a few weeks earlier than typical. One reason is refiners are catching up on maintenance and repair work they weren't able to do late last year because of Hurricane Sandy.
At an Exxon station just outside Philadelphia, regular gas is selling for nearly $3.78 per gallon.
"I've been looking around for the past four stations and this was the cheapest one," Billy Boylan says while filling up his white sedan.
A few pumps over, Nicole Cornwell fondly remembers when the price was $1.50 a gallon. Actually, winter of 2003 was the last time gas hovered around that cost, according to the U.S. Energy Information Administration.
Cornwell says she drives a lot for her work -- she cleans houses and offices. "I got a new car and I got some good gas mileage, so that at least helps," she says.
Since prices are going up earlier this year, they may come back down sooner too.
"Gas prices are probably going to be higher at Easter than they are at Memorial Day and Fourth of July," Cinquegrana says. He cautions that could change if there are unexpected refinery shutdowns or more political problems in the Middle East's oil producing countries.
The EIA projects lower gas prices in the near future, primarily because world oil prices are expected to decline. Crude oil accounts for about two-thirds of the cost of a gallon of gas.
Overall this year, the EIA believes regular gas will average $3.55 per gallon across the country and $3.39 cents in 2014.
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