Iowa had been enjoying gas prices that were below the national average — but the latest survey by the Department of Natural Resources says that’s no longer the case. Energy analyst Brian Crowe says the average price for a gallon of gas went up 18 cents.
Crowe says it has a lot to do with supply, as the supply was good in January and as the weather go colder, the supply dropped and Iowa’s prices got closer to the national average. The survey showed Iowa’s average cost for one gallon of gas was two-dollars-and-eighteen cents. Crowe says eastern Iowa saw the largest price increases this month with Davenport, Dubuque, and Waterloo all seeing a bumps near 30 cents per gallon.
Crowe says that increase has a lot to do with the industry in eastern Iowa. He says competition in cities typically leads to lower prices, but that hasn’t happened in eastern Iowa. Crowe says the 18 cent bump up would have been an aberration 10 years ago, but he says conditions are different in today’s market.
Crowe says there are so many factors involved in the price of gas now, such as weather, and there are more countries vying for gas supplies, which makes the market more volatile. Heating fuels for homes also felt the increase from the cold weather. Crowe says natural gas, propane and heating oil are all affected by the colder temperatures. Natural gas was trading one-dollar-and 21 cents higher in the survey. Propane went up one penny and heating oil six cents.