China's demand and lack of refineries mean higher prices in the states
San Francisco, CA -- (SBWIRE) -- 02/25/2013 -- Gas prices are set to take one of the largest jumps in decades. At a rate expected to be $4 a gallon, the average drive is likely considering just how important many of the possibly weekly trips to stores and banks are necessary.
2013 is likely on track to being one of the most expensive years for someone to fill up their automobile. Prices in Maryland are up 16 cents overall within the past month. According to AAA, the 17 cents that the price has risen on average is just the start.
“The way prices have been increasing over the past few weeks we wouldn’t be surprised to see prices approach near $4 a gallon here in Maryland,” said Christine Delise, AAA.
Drivers certainly are not happy about it, and many can recall a time when prices were considerably cheaper. “I remember when I went to college it was 95 cents a gallon,” a man said.
United States oil production is at its highest point in years, but experts note that there are simply not enough producing refineries. That, mixed with growing demand for oil from China make up the bulk of factors which cause the prices to rise at home.
“The price spike we’re seeing at the pump is a result of crude prices that are trading around the $95-to-$97 barrel range. That’s about 10% a barrel more than mid-December,” Delise said.
Many people admit that the recent rise, and consideration of future rises is a wakeup call. “The more expensive gas is the more interested people are in finding a way to not use as much,” a man said.
The average American household is likely to spend nearly $3,000 on gasoline this year. That is considered nearly 4% of their income.
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