Gas prices spiked once again Monday afternoon at many Ohio gas stations. Around Marion, prices Wednesday morning were averaging about $3.85 per gallon. This is the latest in a series of price spikes that have taken place across the state since early July. AAA reports that the higher gas price trend is not likely to end in the near future.
This summer, Ohio’s gas prices bottomed out on July 2 at an average of $3.25 a gallon. Since then, a combination of refinery and pipeline issues, global factors and summer driving season demand have led to rising prices at the pump.
According to AAA, Ohio isn’t the only state facing rising gasoline prices. In fact, after bottoming out at $3.33 a gallon on July 2, the national average price of gasoline has been steadily increasing as well. On Thursday, August 9, for the first time in more than 100 days, the national average retail price moved higher than it had been on the same day the year prior.
On August 14, the national average gasoline price surged to $3.70 a gallon, for the first time since May 19. At the same time, Ohio’s average gasoline price soared to $3.79 a gallon. This is 22.85 cents higher than the Aug. 14, 2011 Ohio gasoline price average.
More current gasoline price data can be found at http://FuelGaugeReport.AAA.com. For more localized prices, click here.
The national 2011 gasoline price average set a new record at $3.51 a gallon. So far this year, gas prices have averaged $3.61 a gallon. The Oil Price Information Service (OPIS) estimates that Americans are currently spending about $1.374 billion a day on motor fuel. This is just ahead of last year, when OPIS estimates motorists were paying $1.363 billion a day.
Earlier this month, AAA reported that refinery and pipeline issues in the midst of summer driving season helped push Ohio’s pump prices higher. Prices receded at bit after some of these issues were addressed, but have now jumped again. AAA says this most recent jump is largely tied to global geopolitical and economic news.
Ongoing tensions in the Middle East, including saber rattling between Israel and Iran, continued instability in Iraq and the war in Syria are all pushing crude oil prices higher, according to AAA. This is because, unrest in this oil-rich region leads to concerns about future oil supplies. Since gas prices are tied to crude oil prices, when the price of crude oil increases, drivers face higher prices at the pump.
AAA says that in addition to geopolitical tensions, global economic news has also been affecting crude oil prices. This week, the anticipation of economic stimulus in Europe, the U.S. and China is giving prices a boost. This is because, healthier global economies would be expected to consume more crude oil. The expectation of higher demand pushes prices higher.
The seasonal increase in demand that comes with the summer driving season has also played a role in the rising gas prices.
Furthermore, the Chicago area spot market is heating up again on concerns that the refinery issues, which took place earlier this month, have set back production.
With a couple weeks left in the summer driving season, and no sign of falling crude oil prices, AAA says it is likely that gas prices will continue to rise through the rest of the month. However, with so many factors at play, AAA says it’s difficult to predict where pump prices are heading this fall.
You can find local gas prices on Marion Online by clicking here.
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