Gas prices expected to rise with temps

By Michelle Gilbert

Though the snow storms may not show it, summer is getting closer.

Gas prices usually increase as people start driving more in the spring and summer. This summer will be no different.

The average price of gas in the United States as of Tuesday was $2.78 per gallon and prices are expected to rise to an average of $2.81, three cents less than last summer’s average price, said Tancred Lidderdale, Energy Information Administration senior economist.

In January, gas prices for the summer were forecasted at about $2.64 per gallon by the EIA.

One reason for the expected increase is the price outlook of crude oil being higher due to a tighter supply and demand, Lidderdale said.

Gas prices Wednesday at DeKalb Amoco, 920 W. Lincoln Highway, were $2.89 per gallon for regular unleaded.

“If the price went up, the price went up,” said manager Sunny Sharma.

Over the past three months, the price of crude oil has drifted from $50 in January, because of warm temperatures, to $66, resulting from cold temperatures.

Cyclones in Australia and the capture of British soldiers by Iran have caused disturbances, which have also affected the supply of gasoline, Lidderdale said.

Another reason for increased prices of gas this summer is unexpected crude oil refinery outages in the U.S., Europe, Nigeria and Venezuela, mainly caused by operating problems in the refineries.

“Supply of oil only has a few producers,” said economics professor Khan Mohabbat.

The demand for oil, however, comes from many other countries. Limited supply of oil and a higher demand for oil will drive prices up, Mohabbat said.

“We are not happy with the recent price,” Sharma said. “It is hurting us. It is hurting everyone. We have the same income [as before].”