As the temperatures fall, gasoline prices are rising in Iowa. Crude oil futures are hitting new record highs this week, which means Iowans will be paying more at the pumps. Rose White, spokeswoman for Triple-A-Iowa, says to get ready for another gas price bounce, if it hasn’t hit your city already.
White says, "Crude oil prices this week are trading at record levels, at 88-dollars a barrel, which are about 30-dollars a barrel higher than prices we have seen just a year ago." In Iowa, the average gas price is now two-69 a gallon, about eight-cents below the national average. White predicts gas prices will be rising — both in the state and nation — due to the record high prices for crude.
White says: "Much of the increase in crude oil prices is reflected in that price, in fact, you can usually anticipate a two-to-four-cent increase per gallon at the retail level for every one dollar increase in crude oil prices. With crude oil being up about 30-dollars a barrel, we’re seeing about a 60-cent increase in prices at the retail level compared to what we had seen a year ago." White stresses it’s global demand fueling the fire.
White says: "One factor driving the higher crude oil price is certainly is the growing global demand but we also have several new, large refineries being built outside the United States. In fact, one of the world’s largest in India is expected to up in production by October 2008 and that will be probably one of the third-largest oil refineries in the world." White suggests Iowans shop around for the best value at the pump and if you are considering purchasing a new vehicle, you may want to take a close look at its fuel economy standard.