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You are here: Home / Demand, supply problems, push gas prices up

Demand, supply problems, push gas prices up

July 11, 2007 By admin

High demand and tight supplies are blamed for rising gas prices in Iowa and around the midwest this week. Iowa Department of Natural Resources Energy Analyst Brian Crowe says prices have risen quite dramatically in recent days mostly because of refinery problems.

“The flooding in Kansas has closed the Coffeyville refinery,” Crowe says, “that’s a 108,000 barrel a day facility, so that produces roughly four million gallons (of gas) per day.” He says another refinery that closed in Indiana should come back on line next week, providing a bit of relief.

Most of Iowa’s gas stations are now charging more than three dollars a gallon for E-10 blended fuel. Crowe expects Iowa to stay above the three dollar mark until supplies pick up with the opening of the refineries.

Still, with demand high, Crowe believes Iowans will be paying a lot for gas through at least Labor Day. He says motorists can save a few dollars by maintaining the proper air pressure in their tires and by driving at or below the speed limit. 

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Filed Under: Uncategorized Tagged With: Department of Natural Resources, Transportation

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