Serving Boone, Blowing Rock, Banner Elk, and other towns of the North Carolina High Country
Founded 05-05-05

Gas Prices Rise Again, Expected to Drop Soon

Story by Sam Calhoun

Not since Hurricane Katrina wreaked havoc on the southern United States have gas prices skyrocketed at such a rapid pace. Although the national average is still short of $3 per gallon for regular gas—the national average was $3.13 in October 2005, two months after Hurricane Katrina—U.S. retail gas prices surged over the last two months, rising by more than 60 cents per gallon.

According to the Federal Energy Information Administration, the recent surge in prices is due to higher crude oil prices, unplanned refinery outages, increased demand for gasoline and low levels of gasoline imports from Europe. Although gasoline prices began their seasonal increase about a month earlier than usual, the rapid rate of increase, according to the FEIA, is projected to slow over the next few months.

As of Monday, the national average price for a gallon of regular gasoline was $2.84. The highest price was $3.89 in Lee Vining, Va., and the lowest price was $2.07 in Williamstown, N.J.

In the High Country, Phil’s Citgo, 1996 Blowing Rock Road in Boone, reported a regular gasoline price of $2.82 per gallon; Daniel Boone BP, 5030 Highway 321 in Blowing Rock, reported a regular gasoline price of $2.86 per gallon; Zippi’s Exxon, 2968 Highway 105 in Boone, reported a regular gasoline price of $2.86 per gallon; Banner Elk Exxon, 115 Main Street in Banner Elk, reported a regular gasoline price of $2.89 per gallon; and Kangaroo Express, 2200 Highway 421 in Boone, reported a regular gasoline price of $2.86 per gallon.

“I estimate that gas prices have jumped by 50 cents over the past two to three weeks,” said a representative from Zippi’s Exxon.

Phil Halbedel, owner of Phil’s Citgo, said he had “no idea” why prices have spiked but said that his distributor thought the increase had something to do with the war in Iraq. A report from the FEIA substantiated the distributor’s claim. According to an April 10 report from the FEIA, “recent and continuing international tensions amplify the effects of already tight international petroleum markets as the summer season (April through September) begins. At the same time, unanticipated refinery problems in February and March, both in the United States and abroad, reduced the supply of gasoline resulting in seasonal price increases about a month earlier than usual.”

For more information about local gas prices, click to autos.msn.com/everyday/gasstations.aspx?zip=28607&src=LeftNav.