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Gas prices reached a four-month precocious arsenic nan warmer upwind gets drivers backmost connected nan road.
Part of nan problem is that request is flooding backmost astatine a clip erstwhile refineries are having unprecedented challenges, according to power expert and FOX Business contributor Phil Flynn.
Drivers are besides successful nan midst of switching complete from nan wintertime gasoline blends to nan summertime blends, which are much costly to blend and adhd 10 to 15 cents a gallon to prices, Flynn told FOX Business. This twelvemonth it could spell moreover higher.
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In February, energy prices jumped for nan first clip successful months, only adding further unit connected households. Prices roseate 2.3% during nan month, including a 3.8% jump successful gasoline.
As of Tuesday, nan nationalist mean value for regular gasoline is sitting astatine $3.39 per gallon, according to nan latest information from AAA. A period ago, prices were sitting astatine $3.19. However, prices are still beneath nan level they sat astatine a twelvemonth ago, which was astir $3.47, according to AAA.
AAA spokesperson Andrew Gross said this is nan seasonal upswing, and that prices successful summertime usually highest astir June and July earlier falling.
However, Flynn warned group are still emotion nan reverberations from various refinery outages, namely nan extended shutdown of nan Whiting BP refinery successful Indiana and nan U.S. Gulf Coast refinery successful Texas, hindering supply. Flynn besides noted nan flaring incident astatine nan Wood River refinery successful Roxana, Illinois, further tightened supply.
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Typically, "even successful nan worst lawsuit scenario, we whitethorn spot a refinery knocked retired of action for 2 weeks, possibly 3 weeks, and past it gets backmost online and merchandise originates to flow," Gross said. However, nan Whiting BP refinery successful Indiana unopen down astatine nan opening of February.
Summertime state prices typically highest astir June and July earlier falling. (Sven Hoppe/picture confederation via Getty Images / Getty Images)
"The truth that nan supplies of gasoline, crude lipid and diesel substance are beneath mean present and astir nan world against a backdrop wherever OPEC is cutting accumulation is mounting nan shape for yet different rally arsenic nan marketplace heads into nan summertime driving season," Flynn said.
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Moving forward, if things do not spell smoothly for nan U.S. refining industry, past "we could spot a continuation of nan uptick successful gasoline prices that we person seen," Flynn said. He further noted that if crude lipid breaks retired supra $80 a barrel, which he thinks is likely, "it will put further upward unit connected nan value of gasoline arsenic we get into nan bosom of nan summertime driving season."
FOX Business' Megan Henney contributed to this report.
