Welcome to the newest edition of The Why. “Why are gas prices going up again?” you ask? Good question. Timely too.
(In fact, it was almost too “timely” to answer since this series is something people can reference forever. The truth is that the answer to this question is timeless. Any time gas prices go up, you can count on the answer being along these lines.)
According to the Lundberg Survey released this past Sunday, gas prices went up 13 cents in the past two weeks. That makes the national average for one gallon of regular gas up to $2.33. That’s 26 cents up from the national low which was marked on January 26.
So why is this happening? Why are gas prices going up again? We discussed one reason in an earlier edition of this column.
Trilby Lundberg confirmed this and told NBC the continued oil refinery workers/steelworkers’ strike was on reason. Rowena Lindsay, staff writer for the Christian Science Monitor also agrees reporting that this strike is “the largest in 35 years.” It is “in its fourth week and is affecting 12 oil refineries and 20 percent of American oil production” (which is further confirmed by CNBC.)
To make matters worse, there was a refinery explosion last Wednesday at the Exxon Mobil Corporation’s plant in Torrance, California that pushed up prices as well. In fact, gas prices here in California spiked immediately after the gas explosion. As Lindsay notes, “the Torrance Exxon refinery produces about 10 percent of California’s gasoline.”
She further states that Jeff Mower, director of America’s Oil News, pointed out that gas prices “were already on their way up in California because many refineries are not currently operating at full capacity since it is maintenance season.”
Lindsay agrees that gas prices usually “rise by about 30 to 50 cents during this time of year because refineries are switching from making winter gasoline, which is cheaper, to the more expensive fuel used during the summer.” She concludes that this “switch also creates an opportunity for refineries to do maintenance work, which requires shutting down units and pushes prices up.”
Why are gas prices going up again? Now you know.
You ask the questions. We provide the answers.
American Live Wire . . . Listen and be heard.