This year’s gasoline price spike has been steeper than normal. Here are the reasons behind the rise.
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.
Follow Robert Rapier on Twitter, LinkedIn, or Facebook.
Pages: Page 1, Page 2, Page 3
Author: Robert Rapier
Robert Rapier is a seasoned chemical engineer with three decades of international experience in the energy sector. He holds undergraduate degrees in chemistry and mathematics, and a master’s in chemical engineering. Robert has worked extensively in oil refining, production, synthetic fuels, biomass energy, and alcohol production, earning several patents along the way. As Editor-in-Chief of Shale Magazine and a prolific author for Investing Daily, he shares his expertise through various newsletters and his latest book, American Energy: A History of Power, Progress, and Change. Robert's insights have been featured on 60 Minutes, The History Channel, CNBC, and PBS, among others. His articles have appeared in top publications like the Wall Street Journal, Washington Post, and The Economist. For nearly a decade, he has covered the energy sector for Forbes.
View all posts by Robert Rapier
