Pump prices in Iowa have inched up heading into Thanksgiving. The latest Department of Natural Resources survey found the average price of gasoline in Iowa’s metro areas jumped eight cents — up to $2.16 a gallon.
Bill Blum of the D-N-R says despite a “strong” supply of crude oil, gasoline prices are going up as stations anticipate growing demand over the holiday.
“The pump prices that we’re seeing at this time are a combination of a lot of factors, primarily relying the retailers perceived supply and demand options looking at the holiday season coming up,” Blum says.
A D-N-R news release shows U.S. crude oil supplies on November 10th were nearly two percent higher than they were in early October, and four-and-a-half percent higher than at this time last year. But the prices for that crude were higher in the year-to-year comparison. One analyst says winter weather could be the key factor this year in determining fuel prices.
Blum says what happens in the Middle East will play a huge role, as always.
“We’re not seeing anything extraordinary at this time as far as the long-term outlook,” Blum says. “People can look back over the last several years and get a sense that as the international situation fluctuates, gas prices very well may as well, but we’re looking at perhaps over the winter some stability.” The D-N-R surveyed pump prices in 11 Iowa cities on November 12th.
The cheapest gas was being sold in Des Moines for $2.06 a gallon. At the higher end, gas stations in Dubuque, Iowa City and Webster City were selling self-serve unleaded with 10 percent ethanol at an average price $2.20. Diesel fuel prices continue to climb, too. The average price for a gallon of diesel in Iowa on November 12th was $2.61 — up 11 cents over the previous month.