Local News

Gas prices on the rise again

Posted May 12, 2009

Map Marker  Find News Near Me

— When Tyrea Jones pulled in to a local BP station Tuesday for gas, he was stunned by the numbers staring back.

"I just started shaking my head," he said. "I was like, 'Here we go again.'"

Gas prices Gas prices on the rise again

The current average price for a gallon of regular unleaded gasoline in the Triangle is $2.21, nearly 20 cents from a month ago, according to motorist group AAA. Nationwide, the cost is up 20 cents in two weeks.

In an already tough economy, the increase could be another squeeze on businesses trying to cut back on expenses.

"We try to work smarter. We try to be more efficient. We try not to make more than one trip to a certain area," said Frank Campisi, general manager of Fallon's Florist.

The company, which averages about 100 deliveries a day, made some changes last summer, when gas prices surged to the highest recorded average price in North Carolina of $4.05 for a gallon of regular unleaded.

Campisi said he's not worried yet about the recent hike. "We're prepared for the prices to go back up," he said.

Most experts have said it is likely that the cost of gasoline will climb a little higher for the summer. They said it is difficult to gauge how much but most don't expect it to be as high as last summer.

The reason for the increase, Denise McCourt with the American Petroleum Institute, said is basic economics.

"When the recession got really tough a few months ago, we did see demand really go down," she said. "In fact, we saw people change their driving patterns when we had $4 gasoline."

McCourt said because gas stayed below $2 a gallon for so long, people began driving more, and as a result, the price of crude started climbing.

"It's supply and demand that drives this market place," she said. "It's the global mindset about what's going on out there."

Jones said he is concerned but that he is trying to keep the numbers in perspective for now.

"I still look at this as cheap," he said. "As long as it ain't $3.99 or $4, I'm fine."

33 Comments

This story is closed for comments.

Oldest First
View all
  • manofjustice May 13, 2009

    I enjoy high gas prices. It makes me work harder. When the gas is up people work more and less crime is committed. We should keep the gas prices up at least around 3 or 4 dollars per gallon.

  • T-Man May 13, 2009

    It is due to supply and demand. The stickler here is that supply has gone DOWN, at the same time as demand has risen slightly, so the price has gone up.

  • Go GT May 13, 2009

    How can these prices be justified when last year big oil was making record profits..? I would love to be able to decide what I would charge consumers and they HAVE to pay it..

  • Nancy May 13, 2009

    Knowing we get the bulk of our crude from Canada and Mexico, Venezuela is third largest supplier to the US.
    Here are some figures from 2006:

    Iraq's oil production is 900,000 barrels a day below prewar levels.

    • In Nigeria, political insurgents are shutting in 530,000 barrels each day.

    • In Venezuela, production is down 400,000 barrels per day.

    • In the Gulf of Mexico production is 330,000 barrels per day from Katrina and Rita.

  • Nancy May 13, 2009

    "Since history hasn't changed, Bush still ordered the attack on Iraq with faulty intellegence, putting a severe dent in oil production, so yes, that is still his fault."

    Except OPEC countries are not all involved in Iraq, no? And in fact, OPEC decides how much to produce, not our president then or now.

    We as a country, get most of our daily crude consumption fed by buying from Canada, Mexico and Venezuela, not Iraq or the ME as a whole.

    The war did not increase the prices.

  • ncwebguy May 13, 2009

    Paying $4/gallon instead of $2/gallon made paying bills, including the mortgage, impossible. It didn't *create* the recession, but amplified it by pushing families who otherwise would get by to foreclosure. *That* set off the vicious cycle of job cuts -> less spending -> more job cuts.

    The closing of the "Enron loophole" -- trading future contracts without having the cash on hand to buy -- would fix this, but that obviously has yet to happen. Speculation bubbles in housing and oil happened due to lack of regulation, and now we're paying the price for the greed that comes with a lack of oversight.

    If McCain and Palin were elected, "the market" decide we should pay $4+ per gallon, and unemployment would be higher due to less money available for everything else.

    Since history hasn't changed, Bush still ordered the attack on Iraq with faulty intellegence, putting a severe dent in oil production, so yes, that is still his fault.

  • Professor May 13, 2009

    So what else is news. Only ones in control is doing this and don't really care. Stop driving and maybe they will care then. lol

  • Bendal1 May 13, 2009

    "The price of fuel last year is what caused the recession..."

    Really? Here I was thinking the failing banking industry, lack of available credit, loss of jobs and rising unemployment was what caused the recession. Fuel prices were just another symptom of a bigger problem, not the cause.

  • dnice20ecu May 13, 2009

    KY anyone???

  • spaten May 13, 2009

    this is exactly what the gas companies wanted to happen

    gouge the public with ridiculous prices and take the heat for it ... reduce the price to pre-increase prices plus a buck and everyone thinks its a great deal.

More...