Look For Gas Prices To Increase
DETROIT (WWJ) - If you're hoping for gasoline prices to come down, you're out of luck. And with summer just around the corner, you may want to beef up your gasoline budget.
WWJ Newsradio 950's Gary Lundy spoke with Patrick DeHaan, senior petroleum analyst with GasBuddy.com about the direction we can expect prices at the pump to take.
DeHaan says one reason for the higher gas prices is the transition we're making to what's known as "summer blend".
"Summer gas generally achieves better fuel efficiency, and so, it evaporates less easily, and that adds to the cost, these ingredients that are used in summer gas generally cost more," says DeHaan. "By the end of April we could be talking about prices that are twenty to thirty cents higher than were they are today."
Gas prices are now closer to four dollars a gallon than three dollars a gallon but DeHaan says he doesn't believe that we'll see the $4 a gallon price we saw in 2008.
"We are looking at inventories that are 8.8 million barrels under where they were last year, and if we do that conversion to gallons that's a lot less gasoline in inventory, couple that with higher demand, that means higher prices," says DeHaan.
