Gas prices up, lower than Easter 2006 Print E-mail
Thursday, 05 April 2007

Despite gasoline prices climbing steadily higher in the past month, (up 18.6 cents in North Carolina and up 19.5 cents in South Carolina), motorists will pay less for gasoline in both states this Easter compared to last year.

With Easter occurring eight days earlier this year, average prices are 8.1 cents less in North Carolina and 9.1 cents less in South Carolina than they were for the 2006 Easter holiday, when the effects of Hurricane Katrina were still being felt.

“Some factors drive prices upward every spring,” said David E. Parsons, president and CEO of AAA Carolinas. “Refineries retool to produce cleaner burning blends as required by law in several urban areas and perform maintenance chores. Additionally, people begin driving more as the weather warms, boosting demand when refineries temporarily lessen their output.”

The North Carolina state average is $2.63 for a gallon of regular, unleaded gasoline, an increase of 36 cents a gallon since Christmas, with Durham averaging the highest at $2.65. The cheapest North Carolina cities are Fayetteville and Charlotte - both averaging at $2.61 a gallon.

South Carolina's average gas price is $2.51 a gallon -- also 36 cents higher than prices over Christmas 2006. The most expensive gas is in Myrtle Beach at $2.55 a gallon on average, and the cheapest can be found in Spartanburg and Greenville at approximately $2.50 a gallon.

While energy demand typically increases in the spring, it has been 1-2% stronger this year than previously.

“Higher prices, unfortunately, are not driving gasoline consumption downward,” said Parsons. “We continue as a country to consume more without any strong reaction to price.”

“With a Chicago refinery out of commission for at least two months due to a fire, the ongoing British-Iranian hostage situation and low domestic inventories, it is unlikely prices will stabilize in the next few weeks,” said Parsons.

“Hopefully, we will see a drop in prices towards the end of April, as typically occurs, unless there is an unforeseen event,” he said. “If nothing unusual happens, prices should remain below $3 a gallon this summer in the Carolinas.”

“We are in a global economy when it comes to oil,” said Parsons. “Anything that threatens oil supplies can lead to speculation, driving prices higher. China and India are using more energy, just as we are in the United States, putting additional demand against crude oil supplies.”

Easter weekend traditionally is not a major travel holiday but offers a price barometer for the upcoming summer, when travel is once again predicted to be slightly heavier than last year's record driving demand.

An affiliate of the American Automobile Association, AAA Carolinas serves more than 1.6 million members with travel, automobile and insurance services.

 
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