Explanation Behind Rising Gas Prices

By Eric DeFreeuw

April 30, 2013 Updated Apr 30, 2013 at 6:02 PM EST

FORT WAYNE, Ind. (www.nbc33.com) – It’s a site that most Hoosiers are all too familiar seeing – gas prices drastically changing overnight. Yet few have seen prices change at the rate they have the past few days.

More often than not gas prices fluctuate between 10 and 20 cents in a 24-hour period yet Fort Wayne saw an increase of nearly 40 cents, leaving many asking “why?”

According to Gas Buddy Senior Petroleum Analyst Patrick DeHaan, the explanation is simple: the city was getting spoiled for far too long.

"What was going on in Fort Wayne was that prices had gotten so low, competition had whittled down prices so low that when the wholesale cost of gasoline went up last week - just 19 cents a gallon in two days is the change in wholesale gas prices - stations were essentially selling at a loss even before those changes were taken into consideration."

Gas went from an average per-gallon cost of around $3.50 this weekend to nearly $3.90 this morning. The good news is that based on prior trends prices are not expected to stay this high for much longer.

DeHaan also gave drivers some tips for getting better fuel economy per tank of gas. He says driving more cautiously can save roughly 15% to 20% per tank of fuel. The simple explanation is aggressive driving makes your car work harder, thus taking in more fuel. So not only can slowing down help save lives on the streets, it helps save a few bucks at the pump.




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