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Spring swing in prices fires up holiday drivers
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Motorist Kevin Shefflet of Mecca purchases gas at BP on Belmont ave in Liberty 5-18.
By Don Shilling
As Michael Grace was filling up his tank, he shook his head over the rapid rise of gasoline prices.
“It’s a pattern every summer. Right around this time, prices go up,” said the 35-year-old Youngstown resident who stopped recently at BP on Belmont Avenue in Liberty.
His memory is pretty good.
In each of the past five years, gas prices have shot up in the spring. On average, prices have increased 65 cents from Jan. 1 to Memorial Day.
Grace thinks he knows why.
“The answer is money. It’s all about big business. The oil barons are the ones calling the shots,” he said.
If they weren’t, the nation would be more serious about powering cars with electricity, cooking oil or other energy sources, he said.
Bevi Powell, a spokeswoman for AAA, said this spring’s price spike may irritate drivers more than normal because it happened suddenly. Prices hovered at just under $2 a gallon for several weeks and then shot up about 40 cents in the past month.
Kevin Shifflet, 26, of Mecca Township, said the rapid increases can be a shock.
“I hate how it jumps up now. It used to be that it would go up 2 cents a gallon. Now, it goes up 20 cents a gallon,” he said.
Industry experts say this spring’s quick rise was caused by a jump in the price of crude oil. The price of a barrel of oil briefly dipped below $40 in January and February but lately has risen to more than $60.
Gasoline prices normally track the price of crude oil, said Linda Casey, a spokeswoman for Marathon Petroleum Co.
OPEC has tightened supplies this year, trying to keep prices over $60 a barrel, she said. Other factors, such as the strength of the economy and political unrest, can cause traders to buy or sell crude oil, making the price of the commodity fluctuate on daily markets.
The recent jump in crude oil prices added about 25 cents a gallon to gasoline prices, said Ron Planting, an economist with the American Petroleum Institute.
Another factor that forced up gas costs is supply and demand, he said.
“In mid-January, people are driving less because it’s cold and dark,” he said.
As the weather warms, people start to drive more, and that demand forces prices up, he said.
Also, refineries switch to a summer blend for gasoline that reduces pollution but also is more expensive, he said.
Despite the recent rise in prices, a global recessihttp://www.vindy.com/admin/media/photos/14824/on has knocked crude oil and gas prices down dramatically from their highs last summer.
Drivers haven’t seen Memorial Day gas this inexpensive since 2005, when the national average for the end of May was $2.14. Last year at this time, gas was at $3.98.
The U.S. Energy Information Administration expects gas price increases this year and next to be tempered by a large supply of oil already on the market. The agency said national gas prices from April through September are expected to average $2.21, compared with $3.81 during the same time last year.
No local drivers who were interviewed expected prices to bounce up to last year’s levels, but some expect increases.
Shifflet said he thinks prices may hit $3 this summer. Frank Bellamy, 37, of Youngstown, guessed $2.80.
Grace opted for the power of positive thinking.
“Hopefully, the prices go down. It doesn’t really look like it, but I’ll be an optimist,” he said.
The EIA predicted the average annual price will be $2.12 this year and rise to $2.30 next year.
shilling@vindy.com