In the previous few months, travelers were enjoying low priced gasoline. However, the gas prices are showing a steady increase all across the nation. The refineries prepare for summer months by replacing winter blend by summer blend. The prices of fuel in the summer months are usually higher and the oil prices across the globe signal that the prices will go much higher than the previous year. The refinery maintenance cost and operational cost to produce summer gasoline has resulted in the price increase.
On Monday, the national average was $2.31 which is much higher than the $2.29 dollar a week ago. In the same time last year, gasoline prices were $1.81. The sharp rise in the cost of fuel is attributed to the increased oil prices all over the world. Gas price was steady during the month of February and experts suggest that the rate will go much higher in the upcoming months.
The price of premium gasoline went to $10.53 from $10.44. Regular gasoline which was sold at $9.60 is now sold at $9.62. The price of diesel also went up to $9.07 from $9.06 per gallon. The acquisition cost of fuel called as Cost of Insurance and Freight (CIF) has increased recently and this has led to the overall increase in the gas prices. Crude petroleum in the world market is enjoying steady price gain and this has directly reflected in the price increase of different petroleum derivatives. As a result, the fuel cost has increased.
While the gasoline prices have increased in all states, Alabama still sells cheap gasoline for $2.06 per gallon. Similarly, South Caroline also sells gas for $2.04 per gallon at various pumps. Chattanooga offers the best fuel price in the entire nation as the average is 29 cents less than the national average. On the Lee Highway, several service stations were selling the fuel well below the $2 price mark. Gas prices in Ohio have gone up matching the increase in the national average. Some of the gas stations were selling fuel for as much as $3 per gallon. The highest price was recorded in Hawaii where gasoline costs $3.09 per gallon. California and Washington are also selling fuel for $2.99 and $2.78 respectively.
The national average has gained 50 cents in recent months. More than 93% of the gas stations now charge more than $2 per gallon of fuel. This price is at least 13% higher than last year. The volatility in gas prices is expected to increase when there is refinery outrage. The production loss in unexpected circumstances can’t be compensated by the other refineries that minimize production due to maintenance activities.
The summer gas is inherently expensive as it is much cleaner. It allows the fuel to continue to be stable while burning at a higher temperature. The cars can operate at increased power in summer as the summer blend boosts the energy by 1.7%. However, this increase in gas mileage won’t be sufficient to offset the price increase of the fuel.