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Gas Prices Jump Again To $2.65 -- Why?

POSTED: 11:10 am EDT May 27, 2009
UPDATED: 1:23 pm EDT May 27, 2009

Just one week after gas prices jumped in northeast Ohio to $2.49, they increased again to $2.65.

NewsChannel5 consumer reporter John Matarese said the latest hike comes after the Memorial Day holiday weekend, when they normally fall. Typically, prices go up for holidays, then drop afterward, he said.

So why the latest price hike?

Matarese said Speedway kicked off the price hike Tuesday, with Shell, BP and others quickly following them up to $2.65 for regular, their highest level of 2009.

There are three reasons for this latest hike, the most obvious being crude oil prices.

Oil prices have just hit an eight-month high of $61 a barrel: they had fallen as low as $38 earlier this year, when gas fell to $1.79 a gallon.

June 1 is the date most gas stations, including those in northeast Ohio, are required to switch to "summer blend" gas, which burns cleaner but burns a bigger hole in your wallet, costing about 10 cents a gallon more.

In addition, last weekend marked the start of the summer driving season.

It's not much consolation, especially if you are dealing with a layoff, furlough or reduced hours at work, but it's important to remember that a year ago you were paying $3.71 a gallon, with prices soaring to $4.39 in June.




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