The federal government’s Energy Information Administration noted last week that the national average price of $3.52 a gallon was 38 cents higher than it was at this time last year.
In its most recent forecast, the organization predicted gasoline would average $3.55 a gallon for all of 2012.
But in the ensuing time, instability in Iran has caused crude oil prices to rise, increasing speculation that gas is primed to jump even higher.
Why prices are staying high
Shane Pochard, spokesman for Speedway: “Crude prices have continued to hover around the $100 barrel mark. The volatility overseas is affecting that. Because of that, you’re seeing quite a bit of volatility at the pump as well. ... Typically in the wintertime, you’ll see a little bit of a break in crude and gasoline prices, but that just hasn’t occurred.”
Fadel Gheit, an analyst at Oppenheimer & Co., telling McClatchy-Tribune about the effect of more speculators bidding on oil rather than the price being governed strictly by supply and demand: “Speculation is now part of the DNA of oil prices. You cannot separate the two anymore. There is no demarcation. I still remain convinced oil prices are inflated.”
The effect
Ken Troske, director of the Center for Business and Economic Research at the University of Kentucky: “It’s important to recognize that it’s extraordinarily difficult to predict oil prices in the future. ... I don’t know what gasoline prices are going to be in the future. Having said that, if gasoline prices continue to climb — and that’s a big if — that can impact the economic recovery. ... For people who drive, as your purchase of fuel demands a larger and larger percentage of your budget, you have less to spend on other things, and that can slow down the recovery.”
Drivers frustrated
Dave Kershaw of Lexington: “It just seems like it doesn’t take much of an excuse for them to raise the prices. It seems like it’s manufactured half of the time, but I’m not an oil guy. It’s just my speculation.”
Margaret Caywood of Nicholasville: “I think it’s utterly ridiculous that it is as high as it is. I think it’s unnecessary. I think we could uncap some wells. I think we should build a refinery.”
Find cheaper gas: Compare gasoline prices at Gasbuddy.com, Gaspricewatch.com and Gasprices.mapquest.com.
Tips for saving on gasoline
Drive slower: Consumer Reports found that slowing from 75 mph to 55 mph boosted gas mileage 33 percent in testing performed on a family sedan and a large SUV.
American idle: Idling yields zero mpg. The rule of thumb is to turn off your car if you know you'll be stopped for more than 30 seconds, Consumer Reports says.
Trunk junk: An extra 100 pounds in your vehicle could reduce your gas mileage by up to 2 percent. Carrying large items on the roof creates drag that can cut gas mileage 5 percent.
Use cruise: Cruise control is steadier on the accelerator pedal. Edmunds.com called it a "surprisingly effective way to save gas."
