Summary
Gasoline prices are expected to rise soon due to a combination of increased oil prices from tensions with Iran and seasonal changes in fuel production. Refineries switch to summer blends, which are more expensive to make, adding to the cost. Analysts also point out that while oil prices impact the market, regional issues at refineries contribute to varying gas prices.
Key Facts
- Gasoline prices may rise as oil prices increase because of U.S.-Iran tensions.
- Refineries start producing summer blends of gasoline in late February or early March, which cost more to make.
- Maintenance and issues at specific refineries in the U.S. can affect local gas prices.
- Current inventories of winter-blend gasoline help to temporarily keep prices lower.
- Typical seasonal price increases range from 25 to 65 cents per gallon between late February and April-May.
- Gas prices are currently low compared to the same time in previous years, starting from a lower point.
- Political events, such as possible U.S. actions in Iran, could continue to influence oil markets.
