It Had to Happen
The numbers at the pump are increasing again.
Gas prices across the nation are on the rise. According to GasBuddy.com, the national average has increased 12 cents per gallon in the last week. Consumers are paying $2.42 per gallon on average.
The average price in Iowa is a little lower. Consumers in the state are paying about $2.34 per gallon, which is a 11.2 cent increase from the previous week.
However, Iowa also had a 10-cent gas tax take effect Sunday. This tax will gain roughly $200 million to fix roads and bridges across the state.
In Red Oak, gas prices range from $2.29-$2.39 with Kum N’ Go having the lowest and all other stations in town are at $2.39 as of press-time Monday.
A GasBuddy.com analyst, Patrick DeHaan, believes that refinery problems are to blame for the increase over the past two weeks. An explosion at a California refinery, unexpected cold-related shut downs along the East Coast and general maintenance have significantly pushed up wholesale prices.
Also, a United Steelworkers Union strike that began Feb. 1 that has slowed down production in refineries in California, Texas, Louisiana, Indiana, Kentucky and Ohio.
Since Feb. 2, wholesale prices have increased an average of 54 cents per gallon. The West Coast currently has the steepest increases.
From coast to coast, wholesale prices have increased from 10-27 cents per gallon, according to DeHaan. “And when you add that on top of the increases that occurred earlier this month, it’s inevitable that retail prices will climb aggressively in weeks ahead,” he said.
DeHaan believes that “increases will persist country wide, and the general upward trend will likely remain in place for 6-8 more weeks before motorists see declining prices ahead of Memorial Day weekend as maintenance work wraps up and the transition to summer gasoline concludes.”
Although prices seem to be increasing, they are still lower than they were a year ago. The national average is currently about $1.04 per gallon lower than a year ago. Prices are about $1.11 per gallon cheaper than they were a year ago in Iowa.
“Volatility is the name of the game right now and we expect that to translate into 10-cent increases in retail gasoline, week after week over the next two to three weeks,” DeHaan said.