Money Matters - Simplified

Gas prices cross $3 per gallon in Louisville

Meanwhile consumers are getting concerned about the rising gas prices and the memories of 2007 when gas prices jumped beyond $4 per gallon have started to haunt them.

For the first time in 2 years, the price of crude oil has crossed $90 per barrel and the impact is quite visible. While gasoline prices soared throughout the America, it surged above $3 per gallon in Louisville region. The rising price of gas may force consumers to spend less this Christmas.

The gasoline prices have risen by 29 cents since November in Louisville area. The analysts have cited shortage of inventories at the refineries besides seasonal increases and growing market speculation as the probable reasons behind this price rise.

Price rise in festival season to hit hard
This makes it the first Christmas after 2007 when the gasoline prices have crossed the $3 per gallon mark.

Tom kloza, analyst with Oil Price Information Service, said that the prices could rise to $3.25 to $3 .75, a gallon by coming spring mainly because of the speculative trading in oil and gas.

But whatever the reason, residents are bound to hit hard. A student from Louisville, who spends $20 to $30 per month on gas, said that she will have to forget about the gym she was planning to join because of the rising gas prices.

On Wednesday, the gas prices for a gallon of regular unleaded averaged near $3.7 and surged to $3.9 in a single day, told AAA Kentucky spokesman, Roger Boyd.

“If we stay with a really cold winter, I cannot guarantee that prices will come down even after the holiday travel wanes,” said Boyd. The reason is that in case of severe winter sheating oil demand will vie with gasoline, which can increase prices.

The AAA reported that the national average price of gasoline hovered around $3 on Wednesday. It is 15 cents higher than last year’s prices for the same season.

Crude oil prices also rising
Tom kloza, analyst with Oil Price Information Service, said that the prices could rise to $3.25 to $3 .75, a gallon by coming spring mainly because of the speculative trading in oil and gas.

Analysts say this week’s rise is mainly due to lesser inventories at the refineries and also because of the rising crude oil prices, which were at the highest in two years.

Robert Calmus, spokesperson for Marathon Petroleum, said on Wednesday that the prices of crude oil directly affect the price of gasoline.

“The bottom line is that crude oil is a commodity, and it is traded world wide as an investment. We in the U.S., need more oil than we can produce domestically. We have to go to the market and we can’t control the price,” Calmus added.

Meanwhile consumers are getting concerned about the rising gas prices and the memories of 2007 when gas prices jumped beyond $4 per gallon have started to haunt them.

Michael Turner, a father of three, told courier-journal.com that rising fuel prices mean a cut in extra spending because you have to buy gas to get to the work.