Suppliers Behind Rising Gas Prices
Date posted - February 29, 2016
Northwest Iowa — We told you last week that gas prices in northwest Iowa have been on the rise for the past couple of weeks, and a fuels analyst at the Iowa Department of Agriculture says that’s due to an adjustment in the supply.
Harold Hommes says the gas refineries are the issue with rising prices.
Hommes says, while he wasn’t surprised to see a price increase, he was surprised by the amount of that increase.
He says suppliers had a glut of gasoline, and once that worked down some, they raised the price.
Hommes says the oversupply left little room for the refineries to make much on the sale of gas.
The average price of a gallon of gas statewide last week was one dollar, 67 cents, up seven cents from the week before. Gas prices have jumped as much as 18 cents in the last two weeks in parts of our area, with pump prices in Sheldon Monday afternoon at $1.76.