03-01-2015, 01:07 AM
2-28-2015
Why are gas prices going up
In Southern California, the price at the pump has spiked a record 79 cents, according to AAA.
"Right now we're basically in the eye of the storm," says Allison Mac, an analyst with GasBuddy.com.
She says the problem is not the price of crude oil, which is holding steady at about $49 per barrel. The problem is at the refinery.
"In the industry we call this a first quarter climb. Every year around this time, nationally prices go up because we switch over to summer blend gas"
Refineries go through a maintenance cycle during the switch over. That means production is lower.
And if you needed one more reason to hate this wicked winter, it's also costing you money. Extreme cold in the Northeast has slowed production at three refineries that account for more than two-thirds of East Coast oil output.
Why are gas prices going up
In Southern California, the price at the pump has spiked a record 79 cents, according to AAA.
"Right now we're basically in the eye of the storm," says Allison Mac, an analyst with GasBuddy.com.
She says the problem is not the price of crude oil, which is holding steady at about $49 per barrel. The problem is at the refinery.
"In the industry we call this a first quarter climb. Every year around this time, nationally prices go up because we switch over to summer blend gas"
Refineries go through a maintenance cycle during the switch over. That means production is lower.
And if you needed one more reason to hate this wicked winter, it's also costing you money. Extreme cold in the Northeast has slowed production at three refineries that account for more than two-thirds of East Coast oil output.