» Pain at the Pump

Pain at the Pump

By Dave Dahl June 8, 2016 8:04 am

It’s Economics 101 – supply and demand – telling the story of rising gas prices.

Summer travel is the reason demand is up.

“In the last month gas has gone up about 20 cents – that’s Illinois averages,” says Beth Mosher of AAA Chicago. “The reason that we’re seeing that, and the Midwest is seeing some of the most expensive prices in the country right now, is fuel supplies have really declined in the past month because of ongoing refinery issues.”

The gas station owners say they actually profit more when gasoline is cheaper. Mosher says the real profits are inside the store – if you go in and buy a fountain drink or a candy bar, that is where the owners truly cash in.

Gas Prices Jump but Still Cheaper than Year Ago

By Dave Dahl March 5, 2014 5:01 pm

The price of gasoline has been rising sharply in Illinois.

The statewide average is now $3.70, up 34 cents over the last month, according to the Triple-A Daily Fuel Gauge Report. Triple-A spokesman Beth Mosher says the increase is because the switch to the summer fuel formula is under way, and because the weather held down the price last month.

“It had an enormous effect about a month ago with low demand, supplies very, very plentiful. Now what we’re into really is not dependent on weather. It’s seasonal maintenance that refineries go through every single year to get ready for that switchover to the summer blend of gasoline,” she said.

The changeover reduces refinery capacity for a while, driving up the price, and when the summer formulation hits the market, it is a little more expensive than the winter blend.

The current price is still 16 cents cheaper than it was last year at this time.