The Daily Item, Sunbury, PA

News

January 31, 2013

Gasoline prices get early start on spring surge

NEW YORK — Gasoline prices are getting an early start on their annual spring march higher.

The average U.S. retail price rose 13 cents over the past two weeks to $3.42 per gallon, and within a few days it will likely set a record for this time of year.

The culprits: Rising crude oil prices, slowing output at refineries that are undergoing maintenance, and low supplies of gasoline.

These are the kinds of thing that push gasoline prices higher every spring after what is normally a lull in gasoline prices in the late fall and early winter. But a heavy schedule of January maintenance at West Coast refineries has led to sharply higher prices there. Meanwhile, low inventories have pushed prices higher on the East Coast.

And rising crude oil prices have pushed prices higher throughout the country.

"I'm not surprised at what I'm seeing, but I am surprised it's coming early," said Tom Kloza, Chief Oil Analyst at the Oil Price Information Service.

Hopes of stronger economic growth in the U.S. and abroad helped push the U.S. stock market to a five-year high in January and sent crude prices up. When economies expand, more gasoline, diesel and jet fuel are consumed by shippers and travelers.

Crude oil has risen 14 percent since mid-December, to $97.49 on Thursday. Brent crude, the benchmark used to price oil that most U.S. refineries use to make gasoline, is up 9 percent since then to $115.55

But gasoline wholesale prices are rising even faster. That's the price distributors and service stations pay to buy the gasoline that they then sell to drivers. Wholesale prices in California are up 56 cents — a 20 percent jump — to $3.32 per gallon, in just two weeks, according to Kloza. Many California drivers will soon see $4 a gallon at local stations. Smaller but still substantial jumps are being seen throughout the country.

Retail gasoline prices have risen for 14 days straight, according to AAA. The average price for the month of January was $3.32, the second highest January average ever, although a nickel cheaper than last year's record. In each of the last two years gasoline prices rose sharply at the beginning of the year because tensions in the Middle East raised fears that oil supplies would be disrupted. In 2011 it was the Libyan uprising; in 2012 it was Iran's threat to close a key shipping lane.

So far in 2013, gas has been cheaper than it was last year. But that could change by this weekend as stations pass along the cost of their higher priced gasoline to drivers.

The national average price has risen in nine of the last 10 Februarys. Last year gasoline prices jumped 28 cents, or 8 percent, in February and averaged $3.55 for the month.

Analysts still don't expect prices to follow last year's steep path through March that brought them to a high of $3.94 on April 6. Crude oil supplies are high, oil production is booming and the economy isn't growing very fast. Also, the tensions in the Middle East seem to have eased somewhat.

And consider this as you fill up on your way to a Super Bowl party this weekend: The oil and gas analyst Stephen Schork notes that while gasoline prices may seem high, they haven't risen nearly as fast as tickets to the big game. When the first Super Bowl was played 46 years ago, gasoline cost about 32 cents per gallon and Super Bowl tickets cost $10. Now gasoline is $3.42 and a seat in a distant corner of the Superdome costs $2,236 on the ticket-reselling site StubHub.

Put another way, a ticket to the Super Bowl in 1966 was worth about 31 gallons of gasoline then, enough for 2 fill-ups. A ticket to Sunday's game between the Baltimore Ravens and San Francisco 49ers in New Orleans is worth 650 gallons — enough to fill a mid-size sedan 43 times.

Which makes gasoline, according to Schork, "a bargain."

 

 

1
Text Only
News
  • Donations to Budd family near $60,000

    SHAMOKIN DAM — The Valley continues to give as fundraisers keep forming and donations steadily pour in for the Budd family, of Ohio, while Sharon Budd continues her fight back from drastic injuries suffered when a rock thrown from an Interstate 80 overpass in Union County slammed through the windshield of the family’s vehicle three weeks ago.

    July 30, 2014

  • B-17 fly-over to honor 'Dutch' VanKirk

    NORTHUMBERLAND — A Boeing B-17 Flying Fortress will soar in honor of the late Theodore “Dutch” VanKirk during his graveside services Tuesday morning.

    July 30, 2014

  • dogs31.jpg Is Spike spiteful?

    Dog is often considered man’s best friend, but a recent study shows he may be a little green over how much time you spend with other pooches.

    July 30, 2014 1 Photo

  • CORBETT_TomC.jpg Corbett: VanKirk helped to save the world

    Gov. Tom Corbett today issued the following statement on the death of Northumberland County native Theodore “Dutch” VanKirk, the last surviving crew member of the Enola Gay:

    July 30, 2014 1 Photo

  • Afraid of grandson? "Now I am," Amanda Trometter says

    Erick Trometter slept with hunting and butcher knives beside his bed while living with the grandmother he allegedly attacked on the morning he was shot after allegedly pulling a knife on a city police officer.

    July 30, 2014

  • vk1.jpg Ted VanKirk: Seen from above

    The Daily Item is republishing online its spring 2012 interview with Northumberland native Ted “Dutch” VanKirk, the navigator of the Enola Gay, which dropped the first of two atomic bombs on Japan in 1945. The story appeared in Inside Pennsylvania magazine. VanKirk died Monday in Georgia at age 93.

    July 30, 2014 2 Photos

  • vankirk_ted1.jpg “The Japanese were beaten before we even dropped the bomb”

    Compared to the 58 other missions they ran together, the one they were assigned to carry out on Aug. 6, 1945 was easy.
    There would be no return fire, flying conditions were ideal, and if all went according to plan, they would be back to the base in Tinian by nightfall.

    July 30, 2014 2 Photos

  • Ritz-Craft Ritz-Craft to hire 60 for Mifflinburg plant

    MIFFLINBURG — Sixty jobs are coming to Mifflinburg as a Ritz-Craft production facility that went dark seven years ago amid the housing downturn will come back on line during the next few months, company officials announced Tuesday.

    July 29, 2014 1 Photo

  • Selinsgrove man dies when tractor flips in Chapman Township

    PORT TREVORTON — A 57-year-old Selinsgrove man died Tuesday evening when the farm tractor he was driving overturned and pinned him beneath it, according to Snyder County Coroner Bruce Hummel.

    July 29, 2014

  • VanKirk 'Real hero' of World War II dies

    ATLANTA, Ga. — Theodore “Dutch” VanKirk, the last surviving crew member of the Enola Gay, which dropped the first atomic bomb on Hiroshima, died Monday of natural causes in the retirement home where he lived in Georgia. He was 93.

    July 29, 2014 1 Photo

The Daily Marquee
Video
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.