Story posted Wednesday, June 10, 2009
Rising Gas Prices: Why Now?
Chicago area gas prices are dancing closer to $3 a gallon after bottoming out last December at almost half that price.
Locally, suburban drivers need to fill up in the suburbs before heading in to Chicago as gas prices can run as much as 61 cents higher in the heart of the city.
After reaching an average high in the Chicago area of $4.35 a gallon last August, gas prices began a freefall last September eventually dropping to $1.65 per gallon in December, a low not seen since late 2003.
Creeping up slowly and steadily since that December low, the average price for gas as of last Thursday was $2.89 a gallon in the Chicago area and $2.70 per gallon nationally.
Jason Toews, founder of GasBuddy.com, a gas tracking website that operates ChicagoGasPrices.com, said last summer's prices were artificially low and expects Chicago area gas to peak in the next seven to 10 days reaching $3.10-$3.15 per gallon.
Long-term, Towes expects gas to reach an average of $6 per gallon in the next two to three years nationally.
The cheapest area gas prices last Thursday could be found in Bensenville and Itasca along Irving Park Road at $2.68 and $2.69 per gallon compared with $3.29 per gallon found on the Near North and Near South sides of Chicago.
In the Journal's Northwest suburban coverage area, Niles and Des Plaines had some of the highest and lowest gas prices around. Low prices for gas were found Thursday at Milwaukee Avenue and Main Street in Niles and Sam's Club, Oakton Street and Mt. Prospect Road in Des Plaines, for $2.75 per gallon. Other low prices were found at Dempster Street and Greenwood Avenue in Niles at $2.78 a gallon and at six Elk Grove Village filling stations for $2.79.
The most expensive gas in the Northwest suburbs could be found in Des Plaines at the Marathon station at Oakton and Cora streets and the Citgo at Oakton and Sycamore streets for $2.99 a gallon. Next highest was at the Shell at Milwaukee Avenue and Ballard Road in Niles for $2.95.
The upswing in prices is partially a regular seasonal phenomenon as stations begin to sell gas blended with extra additives for the summer in addition to increased demand.
That upswing can begin as early as February or March under normal conditions, but Towes said this year is anything but normal. The recession kept demand low and increases did not start until May this year, said Towes. The artificial lows also caused gas companies to stop new oil exploration and processing, ensuring a later spike in prices as supplies fail to keep up with demand.
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