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
  • Prize claim cost man $1,829

    WINFIELD — Western Union is doing what it can to educate people about the risks in wiring money. An entire section on its website (www.westernunion.com) is devoted to providing information that might reduce the risk of people falling victim to fraud schemes.
     

    April 19, 2014

  • Reel good time enjoyed by 200 young anglers

    TREVORTON — It only took about three minutes for J.C. Wallish to reel in his first fish at the Little Shamokin Creek Watershed Association’s annual Youth Trout Derby on Saturday.
     

    April 19, 2014

  • Elytte Barbour's 'bad trip' put him on the road to prison, friend says

    SUNBURY — A former roommate of slaying suspect Elytte Barbour drove 450 miles from North Carolina to spend 45 minutes in the Northumberland County Prison with his best friend last week, and was not surprised when he heard Barbour say: “I am afraid to spend the rest of my life in jail.”

    April 19, 2014

  • bonehunt20a.jpg 60 dogs battle for biscuits at annual bone hunt

    It was a scene similar to ones playing out all over the nation this weekend: nervous parents holding baskets and bags, watching their little ones search for goodies in the grass.

    April 19, 2014 1 Photo

  • Arizona tribe set to prosecute first non-Indian under a new law

    PASCUA YAQUI INDIAN RESERVATION, Ariz. — Tribal police chief Michael Valenzuela drove through darkened desert streets, turned into a Circle K convenience store and pointed to the spot beyond the reservation line where his officers used to take the non-Indian men who battered Indian women.
     

    April 19, 2014

  • Danville parents hope strike ends quickly

    DANVILLE ““ First-grader Madison Wild was sad she missed school Thursday.

    April 19, 2014

  • Schools ask state to waive 180-day rule

    Three area school districts have asked the Pennsylvania Department of Education to add up their hours instead of their days in order to reach the required amount of instruction time in the school year.

    April 19, 2014

  • Former Bucknell star in NBA playoffs

    ATLANTA — It really hit Mike Muscala a few days ago when he was listening to the Nets’ starting lineup at the Barclays Center in Brooklyn.

    April 19, 2014

  • State: Discard raw milk from Greenfield Dairy

    MIDDLEBURG — Consumers should discard raw milk purchased recently from the Greenfield Dairy of Middleburg, which also has temporarily suspended production after Listeria monocytogenes was discovered in the product following routine testing, the state Department of Agriculture announced today.

    April 18, 2014

  • Penn State police: Three posed nude at Nittany shrine

    STATE COLLEGE — Penn State police say three male students who reportedly posed nude for a photo at the university’s Nittany Lion Shrine face school discipline.

    April 18, 2014

The Daily Marquee
Poll

How do you eat your chocolate Easter bunny?

Feet first
Tail first
Ears first
     View Results
Photo Galleries
The Valley

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.