Fuel Prices To Climb Above $2/Gal Beginning Mid-February

Cameron Aubernon
by Cameron Aubernon
fuel prices to climb above 2 gal beginning mid february

Enjoying sub-$2/gallon prices at the pump? Those fuel prices will make their slow climb back up above $2 beginning later this month.

GasBuddy says that while oil prices have fallen, the wholesale prices for refined products, such as gasoline, are on the rise. Underutilization of capacity at the refinery is leading to a surplus of oil, which means less gasoline et al to distribute.

Another contributing factor to the increase in price at the pump is the annual changeover to summer-blend gasoline, whose cleanliness comes at a higher cost. Consumer demand and refinery maintenance will help push up pricing, as well.

The increase is expected to crest between April and May, likely to remain above $2/gallon for some time to come. The current average is holding at $2.04/gallon, per AAA.

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5 of 28 comments
  • Jimbob457 Jimbob457 on Feb 02, 2015

    A strike has idled approximately 10% of US refining capacity, and the price of crude has evidently found a bottom at about $45-50 (this will likely put an end to extensive discounting of US crude). That plus seasonal factors look like they will cause gasoline prices to rebound a bit. Looks like a good couple of quarters for US refiners.

  • NoGoYo NoGoYo on Feb 02, 2015

    It never went below $2 here anyway (current average is about $2.20) so I've got nothing to cry about.

  • Cackalacka Cackalacka on Feb 02, 2015

    Naturally, the only solution to this morass is to build a pipeline carrying concentrated low viscosity bitumen above the most fertile aquifers in the history of agriculture so some Canadian billionaires can get richer and the price of a gallon in Shanghai can come down a nickle.

    • Lorenzo Lorenzo on Feb 02, 2015

      There are questions about the well head price of fracked crude, but there's no question the cost of extracting bitumen from tar sands is way higher than the current price. There are already pipelines to carry Bakken crude, but they're at capacity. The attraction of Keystone was that the Canadians would pay for it, and Bakken crude could piggyback. Now it's doubtful that Canadian interests will finance it, and low prices make it doubtful there's financing for increased capacity of existing pipelines and/or special rail cars that can transport volatile Bakken crude safely. Neither is now economically viable.

  • John John on Feb 02, 2015

    All hail the prescient GasBuddy; which predicted sub $2.00 a gallon gas was coming, way back in early 2014.