Spring is almost here,
which means gas prices are on the rise, starting with a 6-cent-a-gallon boost in the past week.
Spring is almost here, and that means gas prices are on the way up, starting with a 6-cents-a-gallon increase over the last week to leave Orlando area drivers paying an average of $2.49 for a gallon of regular unleaded Monday.
Prices in Metro Orlando have been hovering between $2.41 and $2.50 a gallon for the last month, but the cost for fuel is expected to start rising as the U.S. oil refining industry hits peak maintenance season. That’s when oil processing factories shut down production to fix problems and switch to producing a more environmentally friendly form of gasoline required by federal regulators.
Still, prices are about 33 cents a gallon higher than a year ago with spring still ahead, the season when prices tend to rise.
Gas prices will likely rise 15 to 25 cents a gallon during the next two months, said Patrick DeHaan, senior petroleum analyst for gas price-tracking website Gasbuddy.com.
The Orlando area, along with the rest of the country, will likely be looking at its highest spring and 2018 gas prices since 2014, DeHaan said.
“I’m kind of surprised that we’ve held out this long without a lot of organized increases,” DeHaan said. “It will probably be about a 10 percent increase by Memorial Day.”
Last year, the spring peak came in mid-April when prices reached $2.46 a gallon. Those prices were trumped in August and September when hurricanes Harvey and Irma struck Gulf states, shutting down refineries and causing distribution problems throughout the region.
Without factoring in potential hurricanes, prices will probably peak around $2.75 a gallon this year, said DeHaan. That price would be about what drivers paid last year during the peak of the storm-driven increases.
That’s because oil prices are higher than last year. Oil was trading for just under $62 a barrel on the New York Mercantile Exchange early Monday. That’s about 27 percent more than a year ago, triggered by OPEC production cuts and higher consumer demand in the United States.
Oil prices have been relatively steady since the beginning of 2018, so AAA spokesman Mark Jenkins said the recent gasoline price jump has more to do with refineries.
“There are a few ... factors that gave gas prices a boost, but this time it wasn’t crude oil,” said a statement from Jenkins. “Gasoline supplies took a sharp dip last week, as exports rose and refineries began to switch from summer to winter blend gasoline. In addition, demand in the southeast — especially in Florida — is strong, as Americans hit the road for spring break.”
“I’m kind of surprised that we’ve held out this long without a lot of organized increases.” Patrick DeHaan, senior petroleum analyst for Gasbuddy.com