Gas prices may rise as weather cools
October 31, 2006
DeKALB | Despite the recent rise in gas prices around DeKalb, experts aren’t predicting a significant increase until next month.
Last week, DeKalb average prices rose from $2.149 to $2.229. The Illinois average rose from $2.159 to $2.165, according to illinoisgasprices.com.
Tancred Lidderdale, senior economist at the Energy Information Administration, said these increases are results of price stabilization.
“Prices fall in the Midwest faster than other areas,” Lidderdale said. “The decline in crude oil prices was realized faster in the Midwest than other areas because of the area’s closer location to refineries.”
Economics professor Khan Mohabbat said the price of oil is more significant on gas prices than the location.
“The situation and location haven’t changed, so the only reason prices would go up would be the oil prices themselves,” Mohabbat said.
Mohabbat said the prices’ movements are erratic. He sees no trend at this point to tell if prices will go up or down.
Although October has seen an increase in prices, Lidderdale said November and December are months with higher demand.
“During October, the summer driving season is over, but the winter heating season hasn’t started,” he said.