While gasoline prices are soaring to historic highs every day in the greater Baltimore region, consumers should prepare themselves for even higher short-term hikes.
“Oil analysts are telling us that geopolitical issues, sustained refinery damage and the seasonal switching of gas additives are factors that could push prices even higher over the next 20 to 30 days,” said Amanda Knittle, a spokeswoman for the Towson-based AAA Mid-Atlantic.
The monthly increase in gas prices have jumped higher than they have since 1999, according to the purchases monitored by the AAA.
Another factor pushing prices in a never-ending upper spiral is commodity speculators buying and selling crude oil futures, according to AAA.
“It?s the steroid behind the price hikes,” Knittle said.
Such futures markets often serve as an accurate barometer of the marketplace.
John Felmy, chief economist for the American Petroleum Institute, says he also believes the rising prices are simply market driven.
“Most newspapers don?t run the price of a barrel of crude oil in their pages,” Felmy said.
“If they did, consumers should see that since February, the price of a barrel of crude oil increased $34, while gas prices have increased 59 cents per gallon.”
This is why Felmy scoffs at suggestions that oil companies are guilty of price gouging. “When you have an increase in demand, prices soar,” he said.
Around the region
Per gallon self-serve regular gas prices:
» Anne Arundel County: $2.86
» Baltimore City: $2.85
» Baltimore County: $2.86
» Carroll County: $2.86
» Harford County: $2.82
» Howard County: $2.86
Source: AAA Mid-Atlantic
