Gas prices will continue to rise, survey says

Monday, February 13th, 2012 By

crude oil

The price of crude oil is being felt by American consumers at the pump. Image: L.C.Nøttaasen/Flickr/CC BY

According to a recent survey, gasoline prices in the U.S. have spiked by almost 12 cents a gallon over the past three weeks. The price increase is blamed, at least in part, on the rising price of crude oil in the North Sea. Volatility in the Middle East is considered responsible for the wholesale crude price increases.

The largest gas price increase since September

According to the nationwide weekly Lundberg survey, gasoline prices have risen by an average of 11.57 cents over the past few weeks. The average cost per gallon at the gas pumps climbed to $3.5101 as of Friday, Feb. 10. On Jan. 20, prices had risen by only 3.5 cents from the previous week. The latest increase is the highest per-gallon hike since September. It is also 12 percent higher than it was year ago. The recent survey indicates a continued and accelerated growth in U.S. fuel costs.

Surveyed, the highest and the lowest

The Lundberg survey polls about 2,500 gas stations across the continental United States. The lowest price of gasoline reported in the cities covered in the survey was $3.01. That price was recorded in Denver, Colo. The city of Long Island, N.Y., because of its higher taxes, had the highest rate, at $3.82 a gallon.

Crude prices sooner impacted by Middle East changes

According to Trilby Lundberg, the editor of the survey, the price of North Sea Brent crude oil has increased by $7 a 42-gallon barrel in the last two months. The prices in the North Sea are more immediately impacted by Middle Eastern volatility than in the United States.

Tension affecting price

Those Middle Eastern tensions include threats by Iran to block vital shipping lanes, the higher cost of summer-grade fuel and a decreased refinery capacity. Another factor affecting the hike is increased gasoline consumption in developing nations, such as India and China.

several more weeks of catch-up

Survey-conductor Lunberg went on to predict that U.S. fuel prices will continue to rise for several more weeks as the market feels the delayed affects of the rise in the wholesale crude costs. According to Bizmology, prices are likely to stay inflated until May.

[If fuel costs are eating you alive, consider payday loans. No credit check needed.]

Automakers respond with more efficient models

Bizmodo’s John MacAyeal reported that automakers, recognizing a trend that may not change at any time soon — and emboldened by sales increases in 2011 that they do not want to see reversed — are responding to the situation by creating more fuel-efficient models.

Gas consumption at its lowest in 13 years

Drivers in the U.S. are using less gas than they have at any time since 1999. The reduction in consumer spending at the pumps also worries some economists. Consumer spending is necessary for the economy to improve and recover.

Sources

The Consumerist
Reuters
Bizmology

  • http://profile.yahoo.com/JH7SPGSSHAGYCI7WGMP273M2GI Corrie

    Gas prices have been on the rise and most noticeably since our economic downturn.  Eco-friendly, fuel efficient cars are a great choice for our current tough economic times.  Did you know that most “green” loans offer lower interest rates than conventional car loans?  

    Credit unions typically offer the best rates around.  Locally, in Tumwater WA, O Bee Credit Union has some great lending options https://www.obee.com/pages/o-bee-credit-union-loan-rates.php.  APR’s as low as 3.74% (depending on your financial qualifications and the lenders current offers) and up to 84 month repayment terms.

    So check out your own local credit unions, they have some of the best offers around.

  • http://www.facebook.com/tleahy3 Tim Leahy

    Americans have had a quick fix for the high price of gasoline/diesel fuel since 1972. It was used, approved and recommended by speed racing icon, Ray Nichels, Chief Mechanic of General Motors Pontiac Division Racing Team. See: http://mpg50.com

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