US Gasoline Prices Shown to Have Surged 5 Cents in Two Weeks

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US Gasoline Prices Shown to Have Surged 5 Cents in Two Weeks

The price of gasoline per gallon increased by almost 5 cents on average within two weeks following increased demand, according to a survey by Trilby Lundberg.

The average per-gallon retail price of regular grade gasoline stood at $3.6065 after advancing 4.93 cents, the Lundberg survey which was carried out on April 4 and released on Sunday showed.

As CNBC reports, the report shows that gas prices have been on the rise since February 7, after going down late last year and at the start of 2014. The survey for the previous two weeks indicated that gasoline prices jumped 4.74 cents.

The study revealed that there were sufficient supplies of gasoline and crude oil, meaning that other forces had a hand in the latest price increase.

“Since it was not a substantial crude oil price hike that did this, and since there is no shortage of gasoline and some of this is seasonal, I doubt that we will see this amount of increase in the next several days,” Lundberg said.

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The US Department of Energy indicated that the demand of gasoline rose 3.8% last month, up from the same period in 2013.

Lundberg added that the oil refinery industry is effecting a change to a summer blend of gasoline, which is more costly to produce. The ongoing hikes in prices of ethanol, a substance that’s added to gasoline, has also affected the shown rise of gas price.

She said that the prices may add only a few pennies, unless there is a significant shortfall of either gasoline or crude supplies.

The survey found Los Angeles to have the highest price per gallon, which stood at $4.04 per gallon. The price in Billings, Montana, was lowest of the cities in the lower 48 states surveyed by Lundberg.

According to Bloomberg, the survey obtained pricing data from about 2,500 filing stations.

To contact the reporter of this story; Jonathan Millet at john@forexminute.com