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Shelley Berry of Aurora writes:

I’ve recently heard and read a fair amount of grousing about how gas prices are rising again. And while I may not be an economist or energy expert, I have observed that every year about now prices begin to go up. The public at large seems to think there is a vast conspiracy to inflate prices, when actually they are determined globally and are based on cost factors and demand.
I have learned that each spring the refineries shift production from winter blends to summer blends, in time for the warmer weather and driving season.
As production is slowed to allow for this production shift, inventories are drawn down and prices temporarily rise. Also, these summer blends are more costly to produce because, in order to keep heat evaporation down and octane levels up, they require more expensive inputs.
The ethanol mandate in the 2005 energy bill is also contributing to higher prices, as ethanol has less energy content and higher transportation costs than gasoline. So, as gasoline demand increases for summer driving, prices again rise in response to both market forces and production costs.

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READER COMMENTS

But,but,but... NO BLOOD FOR OIL!!!

Well now.....seems like the oil companies do a pretty good Bela Lugosi,don't they.

The only bad thing is that the prices still are not high enough to get the poor people off the road and out of my way. I would gladly pay a lot more to get rid of traffic. I say $5 or bust..

Don't worry,the dems. will fix.As aways we will be worst off because of there fix.

Liam may get his wish sooner than later, as the world approaches or has reached "peak oil". It is evident that many of the worlds largest oil wells are now beginning a slow production decline that will not be reversable and we will find that the 84 million barrels of oil the planet uses daily, 23 million barrels daily used in the U.S., is not sustainable.

Having traveled to throughout Europe several times in the past eight years and rented cars for travel, the price of petrol (what they call gasoline) was always about $1.23 per litre or about $5.00 a gallon. Americans are spoiled and seem believe that they are somehow entitled to an endless supply of cheap oil and gas. Eventually, as the oil becomes more tight and demand exceeds supply, Americans will have to get used to higher gas prices, drive less or find other ways to get around.
In The Europe, they have modeled their cites around town squares and have very afforable high speed train transport. It is time for the U.S. to follow their model.

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