Why Gas Prices Are Up--And Why They Might Go Higher

Source: Airbus

Gas prices are on the rise again--the average retail gasoline price recently jumped twenty cents to $2.55 a gallon. A panel of experts joined Bill Griffeth on "Power Lunch" to talk about rising prices--and the factors leading to increases.

“This is a time when it is most dangerous for refineries. Now is when they’re restarting refineries and shutting them down. This is when supplies are the tightest and we feel it the most when it happens,” said Phil Flynn, senior market analyst at Alaron Trading. Prices are at their highest since September of 2006.

According to Tracy Lundberg, president of Lundberg Survey, daylight savings time can also boost gas prices. “It can potentially add, we think, as much as 1% to the demand, and it’s earlier than usual this year. That hour of daylight adds some safety and convenience for a lot of motorists,” Lundberg said.

Tyson Slocum, energy program director at Public Citizen, cited two reasons for the increase in gas prices. “We have allowed so many mergers in the downstream industry that our domestic markets are uncompetitive," he said, pointing to consolidation in the refining sector in particular. Slocum added that energy trading markets are nontransparent and lack government oversight.

Contact Power Lunch

  • Showtimes

    United States
    Monday - Friday 1:00P ET
    Monday - Friday 18:00 CET
    Asia Pacific
    Tuesday - Saturday 01:00 SIN/HK
    Tuesday - Saturday 03:00 AEST
  • Sue Herera is a "Power Lunch" & “Nightly Business Report” Co-Anchor.

  • "Power Lunch" & “Nightly Business Report” Co-Anchor

Power Pitch

Kenny Polcari