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Gasoline prices climbing again
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Published: October 21, 2009
CHARLOTTE - A falling dollar equals rising gasoline prices.
That is the explanation from analysts who have watched the price of crude oil climb in recent weeks, spurring an accompanying rise in the price of gas at the pump.
According to the Web site www.gasbuddy.com, the average price of a gallon of regular gas in Charlotte today is $2.55. That is up 16 cents from a week ago and 14 cents from last month at this time. Prices across North Carolina are the same as in Charlotte, while the average cost for a gallon of regular gas in South Carolina is $2.40.
At some Charlotte stations, the price of gas has climbed more than a dime in the last two days.
The increase came after prices fell about 10 to 15 cents a gallon in early October.
Why the increase now?
Experts say the U.S. dollar lost value in recent weeks, although it rallied Tuesday. Investors began sinking their money in commodities like gold and crude oil, driving up the price of each.
A barrel of crude oil traded for more than $80 for a short time Tuesday -- the first time it was been above the $80 mark since last October. The price fell to $79.09 by the end of the day, but experts say a lack of faith in the dollar is expected to keep crude oil prices at current levels, if not higher. That lack of faith, according to an Associated Press story published Tuesday, is due to concerns that Obama administration spending will spark inflation, and general distrust of the U.S. economy's recovery.
In addition, the recession and resulting slump in business activity has created a decreased demand for gasoline, experts say. A year ago, refiners kept producing gas, and prices tumbled. This year, refiners are not making as much gas, resulting in a much smaller surplus. That is keeping gas prices from going into another free fall, say experts.
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