Rise in traveling and oil prices
According to the American Automobile Association’s (AAA), Wright Express and Oil Price Information Service, consumers are now paying 3 cents more per gallon following the overnight rise to $2.391.
Gas is 32.9 cents a gallon more expensive than last month, but it's still $1.44 a gallon cheaper than a year ago when fears of an oil shortage sent energy prices soaring.
In the lower-48 states, gas prices ranged from an average of $2.20 a gallon in Arizona to $2.62 a gallon in California, whereas in Florida the average cost was $2.40 a gallon, while in Nevada it cost average $2.36 a gallon to fill up.
Dan Ronan, AAA spokesman stated “The encouraging news is that, just for the Memorial Day weekend, motorists will be paying substantially less. Last year, the total bill for gasoline for Memorial Day was an estimated $6 billion. This year it will be about $3.7 billion.”
According to the auto club AAA estimates, 32.4 million people Americans will travel in the holidays, most of them driving. That is a 1.5 percent increase from 2008.
“We’re seeing that more people are actually traveling this year on Memorial Day specifically, but also just making travel plans for the summer than was the case last year and I think that’s largely attributable to gas prices,” said Tom Foster, executive editor at Budget Travel magazine.
Reasons for rise in price
Ron Planting, an economist with the American Petroleum Institute stated that the rise in gas cost depends on supply and demand. Refiners had been turning less oil into gas, because Americans were driving less during the recession. But a rise in demand is partly responsible for higher prices at the pumps.
Ron declared “In mid-January, people are driving less because it’s cold and dark. As the weather warms, people start to drive more, and that demand forces prices up. Also, refineries switch to a summer blend for gasoline that reduces pollution but also is more expensive.”
Industry experts say that the quick rise in price could be attributed to a jump in the price of crude oil. The price of a barrel of oil briefly dipped below $40 in January and February but lately has risen to more than $60.
The AAA and the U.S. Department of Energy expect prices to level out far below last summer's record levels, when regular unleaded reached a record of $4.11 per gallon nationally.
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Absolute stupid analysis.
Stupid analysis and an essay by the writer. How come the gas prices can reach previous summer, the oil prices were 150 dollars. Now they are only 60 dollars (50 divided by 2.5). The oil refinerries running at 80% eficiency already. Its all becuase of the greedy wall street guys, it is increasing. Writers and Analysts, Please stop comparing previous year. It was just stripping the local massess without a shirt.
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