Gas Price Goes Up Again

jump in price on gas

Now that we have summer season behind us, fall season brings us surprises. Even though motorist were expecting for the gas price to reduce a little it actually became higher. It mostly influenced northeast.

It was the very first big move in gas price since last days of August. The price of a regular gallon of gas shot up 1.5 cents nationally to $3.84 in latest reading of AAA on Tuesday. Prices went higher as Tropical Hurricane Isaac forced several main refineries along the Gulf Coast to stop the production in getting ready for heavy rains and strong winds. As soon as Gulf area’s facilities were supposed to be back online, price were expected to reduce. But unfortunately, the retreat in prices will be some time later because Isaac hit too close to September 15 as Tom Kloza (chief analyst at the Oil Price Information Service) informed.

Summer Blend Production

The reason why this so date is so important is because this is the date when USA goes from a more expensive summer blend of gas to a winter cheaper blend. And since the date is getting closer refiners did not want to be left with a lot of expensive gasoline. In one week before the switch, the cut back the summer blend production.

Northeast happened to suffer the most. From Monday to Tuesday prices went up to 3 cents a gallon in the region, and more than 8 cents per gallon since August 30. The most part of the gasoline is being imported to this region, more gasoline than to the other regions in general.

The average gas price rose almost 5 cents in Delaware just in one day to $3.82 a gallon, and was up more than 3 cents per a gallon in states like New Hampshire, Pennsylvania, Maine, Vermont and New Jersey. In states like Connecticut and New York, prices went up by 2 cents. Let me remind you that gas price went above 4$ a gallon earlier for these two states and forced some people to use advance cash services.

As per Kozla, motorist will get a relief not earlier than then next week. But station owners will be really slow to decrease their prices. Some gas stations experienced losses during the final days of the summer. It happened because wholesale prices have jumped up more than retail prices for many operators.

He also compared it with a rocket and feather effect: the price increases much quicker than it comes down.