FUEL PRICES Experts: Gas cost may top record

The price of gas could skyrocket if hurricanes hit this season, some say.
By ZACH STIPE
VINDICATOR STAFF WRITER
YOUNGSTOWN -- Summer could mean emptier pockets for Americans because gasoline prices may rise to record numbers, experts say.
Americans increase their amount of travel in summer, which means they use more gas.
"That's why we call it 'driving season,'" said Dr. A.L. Alhajji, an energy economist and associate professor at Ohio Northern University.
Just because Americans are driving more and using more gas, it doesn't mean that companies will increase the supply of the fuel.
"The industry doesn't have a lot of motivation to make more gasoline," said Brian Newbacher, AAA East Central director of public affairs. "Because it will drive the price down."
Prices are much higher than this time last year.
The Energy Information Administration releases a weekly report on retail gasoline prices. In its latest report, released last week, regular gasoline averaged $2.738 per gallon in Ohio on June 19. That is a 66-cent jump in price from a year ago.
The EIA's report also stated that the national average for regular gas was $2.871 per gallon, up 71 cents from this time last year.
What affects prices
These price increases and an increase in demand over the summer have led to speculation on how high the price of gas could go. Uncertainty in the weather and overseas can affect the price of gas as well.
Alhajji said he thinks that the combination of hurricanes and Middle East unrest could drive the price of gas well above $3.25 a gallon.
"A major factor is hurricane season and its impact on facilities," he said. "A very active hurricane season could force prices up."
Hurricanes Katrina and Rita wreaked havoc on Gulf Coast refineries last year, many of which are still recovering.
Newbacher said that if another hurricane like Katrina attacks, the results could be especially harmful to the gasoline industry.
Refining capacity is still only down to 92 percent or 95 percent because of last year's hurricanes, Newbacher said. "You'd hate to see it knocked down further," he added.
Foreign markets also must be taken into consideration.
Linda Casey, a spokeswoman for Marathon Petroleum Corp. LLC., said too many factors outside of the United States' control determine gas prices.
It's not just what is happening in the U.S. or Ohio, it's a global supply and demand market, she said.
Casey said that investors on the New York Mercantile Exchange could become nervous because of tension in the Middle East and even North Korea.
Looking elsewhere
Do Americans put too much emphasis on the price of gasoline?
"The U.S. has very cheap gasoline prices compared to other nations," Alhajji said.
At the end of last year, while gas hovered around $3 in the U.S., many European nations dealt with gas prices almost double that of the U.S. per gallon. The price of gas in Britain, Italy, Belgium and Norway exceeded $6 in all countries.
Also, gasoline is the cheapest liquid Americans use on a daily basis, Alhajji said.
Americans often pay more than $8 a gallon for soda pop, such as Mountain Dew and Pepsi, compared to close to $3 for gasoline, he added.