Demand For Gas Down Locally As Prices Rise Near Historic Levels
LOS ANGELES (CBS) — Gas prices have risen to historically high levels since the beginning of September, analysts say.
The demand for gas is down locally, but experts say that a growing global demand and rising U.S. fuel exports are leading to the increase at the pump.
"This is all about world demand, particularly in the southern hemisphere in South America where we have been sending a lot of products and the appetite for fuel is really rising significantly," said Tom Kloza, chief oil analyst for the Oil Price Information Service.
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KNX 1070's Jon Baird reports.
According to AAA of Southern California, the average price for a gallon of regular unleaded gas in November is already $3.87, compared to $3.82 last month.
In Nov. 2010, the average price for a gallon of regular unleaded gas was $3.12.
"Its going to be difficult, but you know, its one of those prices you gotta pay . . . what are you going to do? You have to buy gas to get around," said motorist Orestes Lorandos.
Analysts say the price of gas in California could rise to $4.50 a gallon by Easter 2012.
Americans are on pace to spend $489.7 billion on gas in 2011, according to Kloza.
To find the cheapest gas in your area, log onto Gasbuddy.com.
