Gas prices rising across the region
Published 12:00 am Wednesday, March 10, 2010
By ROBIN SHANNON
L’Observateur
LAPLACE — Motorists will see a continuing uptick in gasoline prices in the coming weeks as refineries across the nation begin the switch to a more expensive, cleaner burning grade of fuel.
According to Tuesday’s daily fuel gauge report from AAA, gasoline prices have jumped more than 5 cents over the past week to put the national average for a gallon of regular unleaded gas at $2.759. That figure is more than 10 cents higher than prices from a month ago.
On a local level, Tuesday’s daily average in Louisiana was $2.676 a gallon, exactly one penny more than numbers from Monday.
Local AAA spokesman Don Redman said drivers should expect prices to continue to climb as winter weather makes way for the summer months.
“The U.S. Department of Energy estimates that between now and June 1, gas prices could go as high as $3 a gallon for regular unleaded gasoline, but it is hard to put a solid estimate on what the actual price will be,” Redman said. “Crude oil and gasoline is such a volatile market, and anything can happen.”
Redman said local gas prices could see a run up anywhere from 25 cents to a dollar per gallon in the coming weeks. He said last year prices this time of year jumped by more than 75 cents.
Fred Rozell, a retail pricing director at Oil Price Information Service, said the price hike was also aided by a stark decrease in demand as many Americans were met with layoffs and kept their cars parked.
“Demand is just abysmal right now compared to past years,” Rozell said. “People are driving less and doing a better job of conserving gasoline by better vehicle management.”
Redman also said the price of crude oil, which registered at $82 a barrel, is another factor in the increased price over last year at this time.
“It is more than $6 a barrel higher compared to 2009 and staying steady,” Redman said. “This is frustrating to economists because there is no good excuse for it to be so high. We have a very healthy stockpile of crude oil and refined gasoline.”
Rozell said crude has become an international commodity that is growing in demand overseas in places like China and Japan.
Although prices are continuing to escalate, Redman said motorists shouldn’t expect a return of the price spikes of 2008, when gasoline jumped higher than $4 a gallon locally and nationally.
“That was the tipping point for the economic downturn we have experienced in the past 12 months,” Redman said. “Prices were higher than they have ever have been, but people are not driving enough to push prices too high this year.”