November 22, 2014
As we all plan our summer roadtrips, experts say we can expect to pay a quarter more for a gallon of gas than we did last year. Proving that there are other factors at play...19 cents out of that 25 cent increase will come from higher crude oil costs.
"Demand is up, supply is not rising fast enough to keep prices down, so the only relief valve is price," says Guy Caruso of the Energy Information Administration.
Experts say there are a handful of factors driving up those prices.
Besides summer demand, they include high crude oil costs, tension among world powers and greater demand for corn-based ethanol to replace MTBE, an old additive found to pollute groundwater.
But to local drivers, that's no comfort. Feeling the pinch in their pocketbooks, most admit they've changed their habits to conserve.
According to AAA, here in Reno a gallon of regular unleaded gasoline will cost you $2.78. Last month you were paying close to 30 cents less. And one year ago, the average price was $2.60 a gallon. Compare that to the national average of 2-68 a gallon.