Posted at: 02/01/2013 10:46 PM
Updated at: 02/04/2013 7:15 PM
By: Amanda Ciavarri
Gas prices have gone up 14 cents in the last four days, and the news gets worse.
If you need to fill up, you better do it this weekend cause prices are expected to go up another ten cents by Monday. We wanted to know the reason behind the spike.
There are a few reasons for the increase we are seeing at the pump, things like Hurricane Sandy and the cold weather both play a role. We caught up with people who were filling up at the pump and they say they are seeing the price hike.
Tom Hasman said, “I went to (Washington) D.C. on Sunday, and I usually stop for gas right outside of Harrisburg, Pennsylvania and I stopped Sunday afternoon it was $3.49 and then on the way back home yesterday, it shot up to $3.63 and I had to do a double take.”
Amanda Ciavarri took questions to Paul Marone, owner of East Ave Auto, a Sunoco gas station. Marone called Sunoco directly.
“We need to know why the gas prices are going up again?,” said Marone. "Partially due to Hurricane Sandy in a way. Hess is closing a small refinery in New Jersey and I guess that's causing a little hiccup in the supply chain in the northeast and that combined with the really really cool weather we had a few weeks ago is causing a big demand on petroleum products right now."
Something else you might be surprised to hear. Oil companies like Chevron, Exxon and Valero are at a five year high when it comes to their earnings.
"I understand there is cost involved but when you see it shoot up 4 dollars a gallon in the middle of winter when supposedly people aren't traveling you have to be a little skeptical,” said Hasman.
George Conboy, owner of Brighton Securities, said, “Oil is an input in almost everything you buy. If you drive your car of course gasoline is direct. The fuel that goes into heating your home is very direct, or lighting your home is very direct. But even when you buy products they are manufactured, they are transported. Oil as energy is in every step of our economy. as demand for oil increases and pushes the price higher you will pay a little bit more for everything.”
Amanda Ciavarri asked Marone if this would get better. “In the long run do you think it's gonna get better, do you think it's gonna get worse?”
Amanda, I’m hoping that what we are seeing here is where we change the gasoline to the summer mix stuff,” said Marone. “Normally, we see a really really quick price increase in the spring and when the summer comes Memorial Day Weekend and Fourth of July, it levels off, we are seeing it early this year.
Ciavarri asked, “So what could that mean for the summer?
Marone answered, “I’m hoping we don't see four dollars a gallon gas, but it seems to be we are already there.”
The guys at East Ave Auto say we can expect another price increase by Monday, bringing gas prices up another 10 cents so if you have to fill up, do it now.