High Gas Prices Likely To Stay Through Summer - KLTV.com - Tyler, Longview, Jacksonville |ETX News


High Gas Prices Likely To Stay Through Summer

We've all been riding the roller coaster of gas prices, even before what's called the "summer driving season."

Prices for premium unleaded are very close to $3 a gallon. 

Why? The price of crude is higher, but not anywhere close to records.  The answer lies with those big refineries.

Prices for regular unleaded nowhere near where they were just a month ago.  $2.14 became an average of $2.78 in a hurry.  Now prices are very close to where they were a year ago.

"I've been shocked when I drive in Tyler and I see it's $2.65 in the morning and $2.73 at night, and then it's some other price the next morning," says UT Tyler Business Dean Jim Tarter has seen what we all have.

"I think we've become extra sensitive to worldwide information," he says, of instability in Iran, to refinery problems in Africa, South america, and supply concerns in Mexico.  The price of gasoline has been more volatile even more so than the price of crude.

"[Commodity prices] become emotional market-driven reactions to reduced supply and that jumps up the prices very quickly," he says.

Since August of last year, the price of gasoline has risen faster than crude.  

"You know and I know that we're about to hit the summer driving season and that will run from Memorial Day through Labor Day and as you know when the demand goes up, the price is probably going to stay up," Tarter says. 

Most experts see prices hovering just shy of $3 per gallon through the summer.  0

That is: if refineries come into operation and stay there;
Conflicts don't escalate in oil-producing nations;
And we don't have hurricane activity in the Gulf of Mexico.

Any of those, and we could see gas prices spike.

Reported by Morgan Palmer.

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