Roller Coaster Ride for Gas Prices

It has been a roller coaster for gasoline prices that are once again on the rise.

Across the country, motorists are bewildered with price fluctuations.

Typically gasoline demand spikes during the summer, which translates into higher prices, but this year it is happening earlier than usual.

The question is: Why?

Industry analysts point out that people are driving more than this time last year.

Fuel stockpiles have dropped at a higher rate than expected and crude oil prices have jumped dramatically since January when the price was at a 20-month low.

John Felmy, Cief Economist for the American Petroleum Institute stated, "First of all, the cost of crude oil has gone up by 27 or 28 cents a gallon and the cost of ethanol has gone up about 45 cents a gallon, so the net effect is that the cost of gasoline has gone up to produce it."

Nationwide the average cost is $2.49 a gallon, which is close to 20 cents higher than this time last year.


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