Gas prices are steadily rising across the country again after dropping drastically in the past months. The average price for a gallon of regular unleaded gasoline in the U.S. is $1.89, a 24 cent increase from the beginning of January. Prices in Baton Rouge have risen 27 cents from the beginning of January for an average of $1.79, according to the American Automobile Association’s Fuel Gauge Report.Don Redman, Louisiana AAA spokesman, said because the Organization of the Petroleum Exporting Countries is cutting back on production, gas prices could increase as much as a dollar this spring.”We should feel the effects of that by March or April, which are historically shown to have higher gas prices,” Redman said. “Historically, January and February are the slowest times of the year in terms of demand.”Redman said the market for wholesale gasoline jumped on speculation of several factors. Concern for the outbreak of violence between Israel and Gaza caused the price of crude to rise, sending gas prices up. Crude prices have since fallen, but gas prices still remain relatively high.”We started at $1.54 in Louisiana in January, and we’re currently at $1.80,” Redman said. “In fact, we’ve seen prices jump in some areas 10 cents before [last] weekend.”Redman said there has been concern that a possible strike of refinery workers with the United Steel Workers union would shut down a number of the country’s refineries, causing the price of wholesale gas to jump by nearly a dime. With negotiations continuing, however, crude dropped below $40 a barrel, and the price of wholesale gas dropped nine cents.Erin Kraus, philosophy graduate student, said she tries not to look at gas prices anymore.”You have to drive your car, and you need to get gas,” Kraus said.James Richardson, economics professor and director of the Public Administration Institute in the E.J. Ourso College of Business, said students should not worry too much about prices rising for right now.”Stock [on gas] goes up and down based on demand, and oil prices go up and down with it,” Richardson said. “Demand is currently down.”Andrea D’Aquin, secondary education freshman, said she has not been affected by the gas prices yet but is worried nonetheless.”It’s kind of scary,” D’Aquin said. “We don’t know how the economy is going to be, and it could negatively affect a lot of people.”- – – -Contact Brianna Paciorka at [email protected]
Gas prices rising steadily despite decline in demand
February 3, 2009