If you’ve filled your gas tank lately, it’s hard not to notice. Prices are going up, even as oil prices are staying down. So, why the recent spike at the pump?
It seemed too good to be true, and it was. When gas prices fell below the $2 mark last fall, skeptics said it couldn’t last and it hasn’t.
Gasoline prices are heading upwards again, rising at least 16 cents in the past month in the Tri-state area.
The average price of unleaded in New York City is now $2.11. A month ago it was $1.95, according to the Triple A’s fuel gauge report. In New Jersey the average is up to $1.78, compared to $1.59.
But that is still so much lower than one year ago and in some cases, by more than two dollars. Why gas prices are going up right now isn’t quite clear.
Gas prices often move in the same direction of crude oil, but lately, crude oil prices have declined. Overnight, crude oil prices fell to less than $38 a barrel, closing below the $40 mark for the first time since mid-January.
So why are we paying more than two dollars a gallon for gasoline again?
According to one oil analyst, because the economy is faltering globally, low global demand is keeping crude oil prices down. With gas, it’s a supply issue that has made prices higher.
Auto club spokesman David Weinstein says even though oil prices are holding steady or dropping, pump prices are rising steadily as refiners cut output to halt falling prices per gallon.
Prices at the pump in the Garden State hit a four-year low of $1.47 on Jan. 2.
The auto club says the national average is $1.90.
The average statewide gasoline price in New York state is $2.03 and $1.93 in Pennsylvania.
(Source: WCBSTV)
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4 Responses
So now the gas refiners are manipulating the prices?
Please dont grumble, here in the UK we pay almost that for a litre (£0.90p), 3.785 Litres in a US Gallon, do the maths…….
#2 please dont compare us to the uk we are the great usa not saying we are better people but our country is. the worst fear most of us have with obama is just that, he will make us more like the uk and eu
#2, it seems that every time someone mentions gas prices a European will say “Don’t complain, it’s much worse here”. You can’t compare the prices because you live in a socialist country. Your petrol tariffs are desgined to prevent people from using petrol.
In the US, we believe in freedom (whether that’s the right thing or not) so we don’t have disincentives to buy gasoline. If you don’t like it, leave. C’mon over, but you’ll have to leave the NHS behind too.
If you’re paying 90p now, what were you paying in the summer? Around 2.70 a liter, right? So you’re in the same boat as us, just with a higher baseline.