It doesn’t take a petroleum analyst to realize gas prices are once again on the rise.
According to GasBuddy.com, a gasoline trend tracking website, the average price per gallon in Baton Rouge is $3.262. The average in Louisiana is $3.251 per gallon, compared to the national $3.341 per gallon average.
Gas prices in Baton Rouge have increased by about 12 cents in the last two weeks, according to the site’s data. One year ago, the average price was 30.9 cents cheaper than it is today.
Patrick DeHaan, senior petroleum analyst for GasBuddy, said the recent weeks’ increase in price is largely due to political concerns in Iran.
The price increases are a national phenomenon, and it’s not exclusive to Baton Rouge, DeHaan said.
DeHaan said energy market traders are “rattled” about Iran’s threat to close the Strait of Hormuz, which would sending prices climbing. The Strait of Hormuz is a major passage for petroleum exportation.
If Iran follows through with the threat and eliminates access to Middle Eastern oil, DeHaan said it would wreak havoc on oil prices. The worry now is what has upped gas prices, he said.
“Many times, traders hear that news and react and trade based on emotion. We’re seeing some of those emotions take place on the market,” he said. “News stories push the process.”
But Wumi Iledare, Energy Center director and petroleum economics and policy research professor, said uncertainty in the market is not the only cause.
Supply and demand is the main reason for the rise in gasoline, Iledare said.
“There’s said to be an uplift in the economy and people are more comfortable, so demand is higher,” he said.
As the demand for gas increases, prices will as well.
Ileadare said weather also plays a part. This winter wasn’t as cold as expected, which led to a decline in miles traveled and a shift in demand, he said.
DeHaan said gas prices are typically “quiet” in January and February, and he expects prices to stabilize soon.
“Think back to the days following the start of the crisis in Libya — an event that also rattled energy markets,” DeHaan said in a news release. “We’re seeing similar emotions play out even though there hasn’t yet been a disruption to supply. I would blame emotion for the recent uptick in gasoline prices, nothing else.”
Iledare said he doesn’t expect Iran to close the waterway because it’s heavily protected by U.S. sources.
Rachel Jackson, communication studies junior, said she’s felt the sting of recent gas prices.
“Paying for gas went from mildly painful to excruciating,” she said.
Jackson said she lives about three and a half hours away in Monroe and travels home at least once a month. The rise in price has forced her to change her habits, she said.
She said she makes attempts to drive less, walk as much as possible and catch rides with friends.
Ryan Stafford, business administration freshman, said he’s “absolutely noticed” the price change. He said he tries to find the cheapest gas possible before paying at the pump.
“It costs me about 75 bucks for a tank of gas,” Stafford said.
 
 
 
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Contact Emily Herrington at [email protected]