Wednesday, November 10, 2010
West Virginians Paying More At The Pump
WEST VIRGINIA...
Kanawha County residents may have been surprised to see a double-digit increase in the cost of gasoline at the pumps over the past week.
Gas prices in Charleston were between $3.05 and $3.09 on Tuesday, up from $2.85 a week ago.
Christina Rollyson, a district supervisor with the Charleston AAA office, said she was not surprised that gas prices have jumped this time of year. Numerous factors besides increased demand could cause prices to rise, she said, and officials with the West Virginia chapter of AAA are unsure if the trend will continue.
Christina Rollyson, a district supervisor with the Charleston AAA office, said she was not surprised that gas prices have jumped this time of year. Numerous factors besides increased demand could cause prices to rise, she said, and officials with the West Virginia chapter of AAA are unsure if the trend will continue.
"We have no way of predicting if it will go back down soon," Rollyson said.
The West Virginia State Attorney General's office began keeping an eye on gas prices several years ago, and worries about price gouging were rampant when prices reached about $4 per gallon in 2004. But Assistant Attorney General Doug Davis does not believe price gouging is taking place at this time.
The West Virginia State Attorney General's office began keeping an eye on gas prices several years ago, and worries about price gouging were rampant when prices reached about $4 per gallon in 2004. But Assistant Attorney General Doug Davis does not believe price gouging is taking place at this time.
Rollyson said the price of gas has increased dramatically over the past few days because the value of the dollar has dropped. This is because the federal government has begun buying securities on the stock market in an effort to stimulate the economy, she said.
This has put more money into circulation, which in turn decreases the value of the dollar.
Jan Vineyard, president of the West Virginia Oil Marketers and Grocers Association agreed.
"The price of crude oil was running at $73 a barrel on Sept. 23," Vineyard said. "And on Friday it was about $86 a barrel."
This has put more money into circulation, which in turn decreases the value of the dollar.
Jan Vineyard, president of the West Virginia Oil Marketers and Grocers Association agreed.
"The price of crude oil was running at $73 a barrel on Sept. 23," Vineyard said. "And on Friday it was about $86 a barrel."
The price of crude oil reached $87.49 on Sunday night, according to information provided by AAA. The price of crude oil is the No. 1 factor in determining gasoline prices at the pump, Vineyard said.
"This isn't an issue with supply and demand, it's about a weak dollar," she said.
According to figures provided by the American Petroleum Institute, 69 percent of the price of gasoline at the pump is determined by the price of crude oil. Sixteen percent of the cost comes from expenses incurred by refining and retailing the crude oil into gasoline and 15 percent goes toward taxes.
According to figures provided by the American Petroleum Institute, 69 percent of the price of gasoline at the pump is determined by the price of crude oil. Sixteen percent of the cost comes from expenses incurred by refining and retailing the crude oil into gasoline and 15 percent goes toward taxes.
Regardless of the reasons, West Virginia residents are paying a higher price at the pump than the average American.
# posted by Homer Owens @ 11:10 AM 
