Gas Prices Seen Going Back Up

After falling for several months, gas prices might be on their way back up again. Gas prices in Texas are going back up again, the Killeen Daily Herald reported today. The Herald quoted GasBuddy on the average gas prices in Texas increasing by 1.6 cents per gallon. The press release from GasBuddy cited gas prices averaging $1.83 per gallon in Texas yesterday.

“Refineries have been processing less crude oil and thus producing less gasoline, which will contribute to a soft bottoming out of the national average before a small recover back in the very low $2’s,” the Herald quoted Patrick DeHaan, GasBuddy senior petroleum expert, as saying on gas prices.

“While this year will still feature far lower gas prices than last year, we’ll be subject to a seasonal lift in gasoline prices as refineries slow production to do maintenance and to make the progressive switch over to cleaner burning summer gasoline.”

Gas prices are rising in Colorado Springs as well, the Colorado Springs Gazette reports today. The Gazette reports that gas prices are unlikely to fall any lower in the next few months in Colorado Springs.

Colorado Springs gas prices have recently gone up from $1.72 per gallon to $1.80, according to gas prices recorded by GasBuddy. DeHaan noted that gas stations lowered their prices on expection that gas prices they pay would continue to decline. Declining production as gas refineries is one factor that is expected to lead to higher gas prices.

“Prices are inching up and the lowest prices have vaporized,” DeHaan was quoted by the Gazette as saying about rising gas prices.

“The lowest prices in the country are always the first to disappear because they are operating with the lowest profit margins. It is good public relations for them to have one of the lowest prices, so they will lose money for a week or so before raising the price to increase their margin and make up some of the money they lost when prices were so low.”

Gas prices were expected to fall below $2.00 per gallon, the Inquisitr reported in December of last year. At the time, some areas were already seeing gas prices lower than $2.00 per gallon.

“Gas prices could be well below $2 per gallon, reports WTVR CBS 6 News from Richmond, Virginia. WTVR cited Gas Tracker as a source for $1.97 gasoline from Sam’s Club in eastern Henrico and $1.99 gasoline at Costco in Midlothian. American Automobile Association (AAA) Mid-Atlantic was cited as attributing the lower gas prices to decreased demand and lower crude oil prices,” the Inquisitr reported about low gas prices.

[Image from the San Francisco Examiner]