It’s almost summer vacation season, but prices at the gas pump could put your road trip on hold. Prices have been climbing upward, and right now there is no end in sight.
“It’s $2.93,” Smith says. “For Texas, it’s currently $2.74. But unfortunately, what happens is when you see the price rise, it’s a lagged effect. And so you initially see the oil price rise and that immediately impacts exchange traded price of gasoline, but that then takes a week or so to filter through to the price at the pump. So as we’re seeing the oil price and this exchange traded price of gasoline rising, that’s only going to continue to reflect through to our prices at the pump.”
So, how high can prices go?
“That’s the million dollar question, isn’t it?” Smith says. “It feels as if we’ve had a good deal of this rally already past. So unless we have some real issue in terms of geopolitical tension, whether that be from Venezuela, which could possibly happen, or from the Middle East, it feels as if we’re getting to the top end of this range here.”
Written by Jen Rice.