News » Local

Gas Prices Go Up Again

By Daniela Salvador
May 24, 2012 Updated May 25, 2012 at 2:56 PM EDT

Fort Wayne, Ind. (Indiana’s NewsCenter) – Gas prices have jumped once again just before the next big holiday.

Gas prices have gone up about $.20. The huge jump at the pump has certainly made some people angry as they have to put in more cash to fill up their tanks Thursday as people take off for their long weekends for Memorial Day.

"People like us, and other people, if they want to go away for the weekend to enjoy vacation, you can't because of the gas," said Judith McBride.

Others have found other ways to compensate for the price of gas.

"Basically, I'm getting 40 to 45 miles per gallon here. My other vehicles get less than 20,” said Bruce Denney. “So, every chance I get I ride the motorcycle. It curbs the whole sting of the gas price."

But why are the prices going up when crude oil is at its lowest price per barrel since October?

Prices are tied to supply, demand, and plain speculation. Recent negotiations with Iran about the nuclear program have led to speculation that oil supplies will now increase, bringing down gas prices.

Concerns about Europe's economy mean demand is expected to drop again bringing down gas prices. Many experts say the upcoming holiday weekend could be to blame.

“If people are making their plans for travel and the demand for gasoline should go up, that's the normal function of the markets,” said Hedayeh Samavati IPFW economics professor. “Sometimes the prices are controlled by supply and demand factors and by expectations as well."

Prices can also go up based on refinery and transportation costs and more expensive, lower emission summer blend gasoline. However, in seven to ten days economists expect the gas prices to more accurately reflect the drop in crude oil prices.



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