Gas Price Rise May be Near
By Tim Brockwell
KENTUCKY - While Kentucky drivers have enjoyed relatively low prices at the pump, The Atlantic hurricane forecast and rising tensions in the Middle East have raised concerns nationwide that a large spike in gas prices may be approaching.
According to GasBuddy.com, Average retail gas prices have risen 7.1 cents in Kentucky during the past week, averaging $3.50 per gallon. This compares with the national average, which has fallen .4 cents per gallon. Prices Sunday were 16.8 cents lower in Kentucky than the same day last year, and are 13.8 cents per gallon lower than a month ago. The national average has decreased 10.8 cents per gallon during the last month, and stands 13 cents per gallon lower than this day a year ago.
The National Weather Service updated 2013 Atlantic hurricane season outlook continues to call for an above-normal season. Though we have been lucky so far, GasBuddy.com Senior Petroleum Analyst Gregg Laskoski says a major storm could play a big part in worsening your pain at the pump.
"They are predicting above average activity," Laskoski said. "That always has the potential to create disruption."
Laskoski also says the worsening situation in Egypt could drastically affect fuel prices.
"Egypt controls the security of the Suez Canal," Laskoski said. "That's an absolutely vital channel for global oil commerce."
About 3 million barrels of crude oil per day pass through the Suez, most of it to European markets. Analysts warn a disruption of that flow could cause global gasoline prices to soar.