Rising Oil Prices
In addition to the RVP transition, oil prices have risen significantly since the start of the year. In fact, oil prices rose between the beginning of January and mid-April by 37%. That, alone, is more than enough to explain this year’s surge in gasoline prices.
Given the combination of factors that have taken place since the beginning of the year, it’s actually surprising that gasoline prices have only risen by 26%. With a 37% rise in the price of oil, the transition to summer gasoline, and the floods in the Midwest, we could have easily seen a 50% rise in gasoline prices this year.
But, we are still a month or so away from the traditional annual peak in gasoline prices. We could be in for more sharp increases in the weeks ahead.