Monday, March 26, 2012

Gas Prices Rigged?

Average retail gasoline prices in Florida have risen 7.4 cents per gallon in the past week, averaging $3.89/g yesterday. This compares with the national average that has increased 4.5 cents per gallon in the last week to $3.86/g, according to gasoline price website

Including the change in gas prices in Florida during the past week, prices yesterday were 33.1 cents per gallon , about 10 percent, higher than the same day one year ago and are 15.0 cents per gallon, about 5% higher than a month ago. The national average has increased 21.9 cents per gallon during the last month and stands 29.5 cents per gallon higher than this day one year ago.

One wonders why gas prices are far outstripping inflation compared to other consumer products. Oil analysts say there is ample supply of oil stocks and motorists are in fact cutting back on trips. A similar price rise, however may be seen in the home and auto insurance industry as well. Policy holders typically see 10 to 15% annual increases in premiums. 

One analyst predicts "may" peak in April and says:

"The national average has risen twenty one consecutive days, according to our data, a troubling sign. Typically we expect such increases to occur more so in April," said Senior Petroleum Analyst Patrick DeHaan. "We're 31-cents per gallon ahead of our year ago pace, and I'm seriously contemplating revising my January forecasts upward having seen things race higher, faster than expected. If there's any ounce of good news for motorists, its that such high prices so quickly may mean prices will peak in April rather than May," DeHaan said.

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