MOUNT VERNON — John McBride of Mount Vernon found himself facing $3.45 when he pulled into Speedway to refill his gas tank on Tuesday. He said he is retired and relies on Social Security benefits and the rising gas prices make it tough on him and his wife to get by.
He’s not the only one struggling to incorporate rising gas prices into the day-to-day budget.
A stagnant economy, a decline in the job market and rising prices make the latest spike in gas prices sting, leaving many consumers angry and frustrated.
Gas prices at the pump rose overnight to a record national average of $3.2272 a gallon for regular unleaded, slightly higher than the previous national average record of $3.2265, set last May, according to to AAA. The average price a year ago on Tuesday was $2.54 a gallon.
In Mount Vernon and a number of other Ohio cities, including Wooster, the price of regular unleaded rose to $3.45 a gallon, surpassing the previous state record of $3.40 set on May 25, 2007. In Ohio, the average price for regular unleaded gasoline was $3.241, compared to $2.521 a year ago, according to AAA.
On Tuesday, light sweet crude for April delivery surged to a new record of $109.72 a barrel on the New York Mercantile Exchange before falling after the International Energy Agency cut its forecasts for crude consumption this year.
Many analysts expect prices to moderate, while others predict oil could keep rising to $120 a barrel or higher. With demand for gas expected to rise as warm weather arrives, analysts say pump prices will likely rise as high as $3.50 to $3.75 a gallon, regardless of what happens with oil prices. Prices have already passed the $4 mark at many stations nationwide.
Some analysts believe oil’s underlying supply and demand fundamentals do not support such high prices, and argue that crude’s rise in recent months is mostly due to the falling dollar.
Joanna Herncane, spokeswoman for AAA Ohio Auto Club, said AAA believes there is the potential for continued increases over the next few weeks, but there is no predicting where prices will go.
“A lot of people are really wising up to higher gas prices,” she said. “They are carpooling when necessary, taking shorter commutes to work, if they can, and combining errands.”
She said there is generally a spike in gas prices around this time of year. Between now and May 15, oil refineries make a seasonal switch to cleaner burning summer fuels. This process brings about a temporary, planned shutdown of refining equipment and draw-downs of fuel inventories.
“This will add to the spike that we are already experiencing,” Herncane said. “The latest price spike does not appear to be driven by rising physical demands for gas, or even tight inventories of available inventories in the United States. It’s really being propelled largely by unprecedented levels of investment in crude oil.”
As for McBride, he said he and his wife have already cut back on the amount they travel in recent years. Although he said he is not afraid of things to come because of his faith in God, he does expect further price increases.
Herncane said that, in general, rising gas prices do not appear to be keeping people from traveling. They may decide against eating out at a restaurant or going to the movies, she said, but travel is not something they are willing to cut back on, particularly over the holidays.
