Grim Forecast For Gas Prices
By: Jay Gray. NBC
Updated: February 9, 2012
Every Spring drivers are forced to find more cash for a fill-up.
There are several reasons the numbers are spinning a bit faster at the pump.
"Prices rise based on increase in demand, based on tightness of petroleum markets and the whole process really is stressful on the system," explains Jeff Lenard of the National Association of Convenience Stores.
Stress that includes uncertainty in the Middle East from renewed threats from Iran to block the Straits of Hormuz, the main shipping lane for petroleum.
Meanwhile, refineries in the U.S. are making the expensive switch to summer blends.
"Essentially you are running it through the system twice," Lenard explains. "It's more environmentally friendly, so it costs more to produce."
Friendly for the environment, but not too nice on the wallet.
2012 started with record prices, and they've only gone higher.
Prices at the pump are expected to keep climbing until sometime around Memorial Day.
There are several reasons the numbers are spinning a bit faster at the pump.
"Prices rise based on increase in demand, based on tightness of petroleum markets and the whole process really is stressful on the system," explains Jeff Lenard of the National Association of Convenience Stores.
Stress that includes uncertainty in the Middle East from renewed threats from Iran to block the Straits of Hormuz, the main shipping lane for petroleum.
Meanwhile, refineries in the U.S. are making the expensive switch to summer blends.
"Essentially you are running it through the system twice," Lenard explains. "It's more environmentally friendly, so it costs more to produce."
Friendly for the environment, but not too nice on the wallet.
2012 started with record prices, and they've only gone higher.
Prices at the pump are expected to keep climbing until sometime around Memorial Day.
