Monday, February 20, 2012

Expensive Summer Gas Courtesy of Uncle Sam

Funny... for years I've been told that gas is more expensive in the summer because of higher demand - folks going on vacation & whatnot.

Turns out that's not exactly the problem [emphasis added].
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.

Thanks, Big Government Regulatory Juggernaut!

2 comments:

  1. Not to mention that the BP refinery up here is shut down because it caught fire on Friday. That can't help.

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  2. Linked here: http://bobagard.blogspot.com/2012/02/higher-gas-prices-already-happening.html

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