Gasoline prices jumped in Iowa in the past week and fuels analysts say those pump prices will likely continue to rise for the next week or more. Self-service regular unleaded gas is averaging $2.64 a gallon statewide. That’s up 12-cents in a week and 23-cents in a month. Rose White, spokeswoman for Triple-A-Iowa, says the increase can be blamed on the strengthening U.S. economy.
“Inventories right now look very good,” White says. “They’re up about ten-percent for both gasoline and crude oil. There haven’t been any issues with hurricanes this season and all major U.S. refineries are operating as normal and demand is relatively flat.” White says the value of the American dollar continues to tumble on world markets and that’s one reason why oil prices are edging back up.
“Positive economic news and investment optimism,” White says. “The weakness of the U.S. dollar, which is down about 11-percent over the past six months, it makes oil cheaper for foreign investors to buy and that is helping to drive up the market price.” White says the price climb isn’t done as all of the price hikes haven’t yet funnelled down to the retail level. While the statewide average for gas is now $2.64 a gallon, that’s three-cents below the national average.
The all-time high average price for a gallon of gas in Iowa was just over $4, set in July of 2008.