Gasoline prices smashed the $4-per-gallon mark on the Illinois side of the St. Louis area this week, and it looks like they will keep going up.
Mike Right, vice president of public affairs for the AAA Auto Club of
Missouri in St. Louis, said he doesn't think the peak pricing for gasoline has
been reached.
"It's terrible," he said about the rise over $4 in the Metro East. "You
never see gas prices peak in March. We haven't seen the worst yet."
Prices were standing at $4.09 a gallon for regular at several convenience
stores Thursday.
Last year, the highest statewide average price for a gallon of
self-service, regular unleaded gas in Illinois was $4.32 on May 5. The highest
price in St. Louis last year was $3.95 on May 12.
"Right now, gas is about $4.38 a gallon in Chicago," Right said. "Chicago
had a high of $3.66 on this day in 2011. There was an article in USA Today
that said gas prices aren't breaking consumers, but I think this is premature,
and prices will go higher. I think the impact will be noticeable on other
consumer spending, including at restaurants, travel and other purchases."
Asked how he thought gas prices would influence this year's elections,
Right said that, unfortunately, that is part of the job of holding political
office.
"There are probably some things the president can do, but I don't know if
they can turn it down to $2 overnight," he said. "The main culprit for the
high gas prices right now is what is going on with Iran, and there is a great
deal of anxiety worldwide.
"We don't have an oil supply problem. If we would release crude from oil
reserves, whether or not it would have a positive impact on crude oil prices
is anybody's guess."
Several major refineries have closed, and that will have a negative
impact gas pricing, especially on the East Coast, Right said. The other key
point Right made was that the highest gas prices of the year never occur in
March, but later in the spring or summer.
"Sometimes we have our highest prices in April, but more often we pay our
highest prices in May, June or July," he said. "There is also a conversion
from winter to summer fuel, and that often causes a run-up in prices.
"People have to address their family budgets to accommodate the increased
costs. It's not like gasoline prices are part of the disposable income account
in a family budget, but they are part of the essential costs. You have to make
choices."
Right said he feels most Americans are "tired" of hearing about the ups
and downs of gas prices.
He said he couldn't predict whether the Metro East will see gas prices
rise to $5 per gallon.
"I would certainly hope not. It is possible, especially if we have had
some major disruption of the availability of crude in significant amounts. I
am not predicting $5-a-gallon gas, though."
Last year on March 15, gas prices were at $3.60 in East St. Louis, and
now they are slightly higher than $4, so there has been a 40-cent-plus
increase in 12 months.
"I just don't think we have reached our peak with the gas prices yet,"
Right said.
