Current Gasoline Prices may be the Worst for 2012

Around 33 million Americans, the highest in four years, are expected to drive during the Labor Day weekend. Together with the record high number of Americans taking a road trip for the holiday, current gasoline prices are also reaching  a peak, to an average of about $3.83 a gallon. Gasoline prices today in six U.S. states are at least $4 per gallon, with California holding the top spot nationwide at $4.15 per gallon.

It is still unknown if prices will fall within the next 10 days, as has commonly ocurred following the Labor Day weekend in the past. Regardless, current gasoline prices will move lower about 100 days from now, if not sooner. When 2011 ended, prices at the pump were at $3.25 per gallon. There may be a good chance that gasoline prices will reach that figure by the same part of the year in 2012. Refiners are truly reaping big profits at the moment and they have the tendency to excessively produce when that occurs, the result of which will eventually bring lower prices.

When asked for the reason why prices at the pump quickly rise and slowly fall, it is important to kind in mind the many difficulties and glitches experienced by refineries during the summer, specifically the Chevron fire and recent threat of Hurricane Isaac, which combined to the closing down of several refineries. The prices of wholesale gasoline fluctuated by 15, 20 and even 25 cents in one day in certain places. In effect, retail prices also caught up.

The positive side of all these increases is that it they now reflect a short-term peak in prices for the moment. Thus, the high gasoline prices today in the United States may be the worst seen for the remainder of the year.

By: Chris Termeer