Gasoline prices keep climbing in Iowa and across the country. Jessica Zopf with the Iowa Department of Natural Resources says a statewide survey conducted Tuesday placed the average price for regular unleaded with 10% ethanol at $1.84 a gallon. That’s six-cents higher than the DNR survey from mid-January, but much lower than the February 2008 price of $3.02 per gallon.
Most of the gas made in the United States is produced with oil from overseas. The price of that foreign oil is creeping upward as refineries look to place supply more in line with demand. "We’ve continued to see OPEC making attempts to increase the cost of a barrel of oil by cutting production," Zopf said. "That’s part of the reason why we’re seeing some gas price increases."
On average, the cheapest gas in Iowa can be found in Des Moines. The DNR survey shows Des Moines gas stations are selling E-10 fuel at $1.73 a gallon. Gas stations in Dubuque and Cedar Rapids have the highest average prices, both at $1.90 per gallon. In many other U-S cities, gas prices are now topping the $2 mark. Zopf isn’t sure that will happen in Iowa anytime soon. "A lot of energy analysts are speculating that as long as the economy stays in this recession…we are going to continue to see lower gas prices," Zopf said.