CONSUMER ALERT: Gas Prices Highest Ever For This Time Of Year - Spokane, North Idaho News & Weather KHQ.com

Gas Prices Highest Ever For This Time Of Year

CNBC.COM - Gasoline prices have never been higher this time of the year.

At $3.53 a gallon, prices are already up 25 cents since Jan. 1. And experts say they could reach a record $4.25 a gallon by late April.

"You're going to see a lot more staycations this year," says Michael Lynch, president of Strategic Energy & Economic Research. "When the price gets anywhere near $4, you really see people react."

Already, W. Howard Coudle, a retired machinist from Crestwood, Mo., has seen his monthly gasoline bill rise to $80 from about $60 in December. The closest service station is selling regular for $3.39 per gallon, the highest he's ever seen.

"I guess we're going to have to drive less, consolidate all our errands into one trip," Coudle says. "It's just oppressive."

The surge in gas prices follows an increase in the price of oil.

Oil around the world is priced differently. Brent crude from the North Sea is a proxy for the foreign oil that's imported by U.S. refineries and turned into gasoline and other fuels. Its price has risen 11 percent so far this year, to around $119 a barrel, because of tensions with Iran, a cold snap in Europe and rising demand from developing nations. West Texas Intermediate, used to price oil produced in the U.S., is up 4 percent to around $103 a barrel. That's 19 percent higher than a year earlier.

Higher gas prices could hurt consumer spending and curtail the recent improvement in the U.S. economy.

A 25-cent jump in gasoline prices, if sustained over a year, would cost the economy about $35 billion. That's only 0.2 percent of the total U.S. economy, but economists say it's a meaningful amount, especially at a time when growth is only so-so. The economy grew 2.8 percent in the fourth quarter, a rate considered modest following a recession.

High oil and gas prices now set the stage for even sharper increases at the pump because gas typically rises in March and April.

Every spring, refiners suspend operations to switch the type of gasoline they make. Supplies of wintertime gas are sold off before March, when refineries need to start making a new formula of gasoline that's required in the summer.

That can mean less supply for service stations, resulting in higher gas prices. And summertime gasoline is more expensive to make. The government mandates that it contain less butane and other cheap organic compounds because they contribute to the formation of ground-level ozone, a primary constituent in smog. That means more oil, a costlier component, is needed to produce each gallon.

The Oil Price Information Service predicts that gasoline could peak at $4.25 a gallon by the end of April. That would top the record of $4.11 in July 2008.

The national average for gasoline began the year at $3.28 a gallon. The average price for February so far is $3.49 a gallon. That's up from $3.17 a gallon last February, a record at the time. Back in 2007, before the recession hit, the average for February was $2.25 a gallon.

Prices are higher on the East and West Coasts, where gasoline has risen above $3.70 in Connecticut, New York, Washington D.C. and California. This isn't unusual — states on the coasts charge some of the nation's highest gas taxes.

High gas prices put a strain on many people's budgets. click here to read the full article from CNBC

  • Most Popular StoriesMost Popular StoriesMore>>

  • PHOTOS: All lanes of I-90 reopen after semi-truck loses load in downtown Spokane

    PHOTOS: All lanes of I-90 reopen after semi-truck loses load in downtown Spokane

    Wednesday, April 25 2018 6:25 PM EDT2018-04-25 22:25:01 GMT

    SPOKANE, Wash. - Jim Martin Trucking LLC out of Hayden, Idaho confirmed with KHQ the driver of the semi-truck involved in Wednesday's crash on I-90 in downtown Spokane is okay and is cooperating with Troopers. The driver, who was hauling crushed cars, says he was cut off by another car, which he says started the chain reaction that caused the crash. 

    >>

    SPOKANE, Wash. - Jim Martin Trucking LLC out of Hayden, Idaho confirmed with KHQ the driver of the semi-truck involved in Wednesday's crash on I-90 in downtown Spokane is okay and is cooperating with Troopers. The driver, who was hauling crushed cars, says he was cut off by another car, which he says started the chain reaction that caused the crash. 

    >>
  • 13 semi-trucks park under Detroit overpass to help man considering suicide

    13 semi-trucks park under Detroit overpass to help man considering suicide

    Tuesday, April 24 2018 12:41 PM EDT2018-04-24 16:41:55 GMT

    DETROIT - 13 semi-truck drivers parked their big rigs under a highway overpass early Tuesday morning to help shorten the fall of a man who was threatening to jump.  All lanes of Highway 696 were closed early Tuesday morning after a call came in just before 1:00 a.m. of a man threatening to jump.  

    >>

    DETROIT - 13 semi-truck drivers parked their big rigs under a highway overpass early Tuesday morning to help shorten the fall of a man who was threatening to jump.  All lanes of Highway 696 were closed early Tuesday morning after a call came in just before 1:00 a.m. of a man threatening to jump.  

    >>
  • Ohio teen fatally shoots 11-year-old brother in 'premeditated act'

    Ohio teen fatally shoots 11-year-old brother in 'premeditated act'

    Tuesday, April 24 2018 10:06 AM EDT2018-04-24 14:06:01 GMT

    STREETSBORO, Ohio (AP) - Authorities say a 13-year-old boy has fatally shot his 11-year-old brother in suburban Cleveland, and police are describing the shooting as an apparent "premeditated act."   Streetsboro police say officers were called to a home around 9:30 p.m. Monday. The 11-year-old died at a hospital.   Police say the 13-year-old has been charged with aggravated murder in Portage County Juvenile Court.

    >>

    STREETSBORO, Ohio (AP) - Authorities say a 13-year-old boy has fatally shot his 11-year-old brother in suburban Cleveland, and police are describing the shooting as an apparent "premeditated act."   Streetsboro police say officers were called to a home around 9:30 p.m. Monday. The 11-year-old died at a hospital.   Police say the 13-year-old has been charged with aggravated murder in Portage County Juvenile Court.

    >>
HD DOPPLER 6i
/