The 30-cent rise in gas prices that has occurred over the last month is largely believed to be due to increased demand for a steady supply of gas.
But a simple supply and demand explanation does not adequately account for the price jump. A number of other factors both locally and internationally have the average price for a regular gallon of gasoline at $2.50, up from $2.18 a month ago and $2.34 from the same time last year.
One of the most significant causes for the price increase is crude oil costs. Prices for a barrel of oil now hover around $60, the highest levels in two months.
In addition, the Organization of Petroleum Exporting Countries — commonly known as OPEC — has twice cut production in recent months, driving the price of crude oil higher by limiting supply. Uncertainty in the Middle East over Iraq and Iran also has contributed to higher costs.
The refineries’ switch to summer blendproduction, which causes production there to slow, according to AAA, complicates the lack of supply from the Middle East.
American Petroleum Institute Senior Refining Associate Ron Chittim said the switch happens each year and does not dramatically influence gas prices.
“The notion that prices are higher now because of maintenance is incorrect,” he said. “It happens every winter, every fall. There’s nothing occurring now … that would be any different” than other years.
Weather has also played a factor. More people drove during the mild winter, using gas supplies needed now that spring is near and more people travel on the roads.
Washington metro region prices shouldn’t reach $3, as they have in some places around the country. Relief might be in sight, as OPEC announced Monday that it will not reduce output for April.
