Refinery transition has fuel prices on the rise

By Palm Beach Business.com Staff

DELRAY BEACH — Gasoline prices are climbing again. Expect them to keep climbing in the near term.

The national average price for a gallon of regular rose about 8 cents over the past week to $2.046, according to the U.S. Energy Information Administration. A month ago, the average was $1.934 a gallon.

AAA put the Palm Beach County average at $2.177 a gallon Tuesday, up from $2.049 a month ago.

EIA put the Florida average at $2.063 a gallon, compared with $1.982 a week ago and $1.956

“Retail price increases are now following a consistent seasonal pattern that we see year after year; gasoline supplies tighten because of the conversion by oil refineries from the winter blend to summer blend fuel,” said Gregg Laskoski, managing director of public relations, AAA Auto Club South. “Refineries must undergo this process before they start up their summer (peak demand season) fuel production.” 

Still, prices are a bargain compared to a year ago, when the average was about $1.24 a gallon higher.

Crude oil closed Friday on the New York Mercantile Exchange at $52.38 per barrel but fell back to the $48 range on Monday. Gasoline futures fell sharply as well —  more than a dime to about $138 a gallon.

“In addition to crude oil and gasoline supply and demand, consumers should keep an eye on the value of the U.S. dollar. When the dollar weakens, investors look for a hedge against it; commodities and crude oil prices generally rise whenever the dollar is weak,” said Laskoski. “Last year is a prime example of what a weak dollar can do to gasoline prices.”

Diesel prices are on the rise as well, but still a bargain compared to last year.

The EIA said a gallon of diesel averaged $2.221 nationally, compared to $2.09 a week ago. In Palm Beach County, diesel is averaging $2.40 as of Tuesday.