U.S. Refinery Shutdowns Contributing to Rising Gas Prices
NATIONAL REPORT -- Unexpected shutdowns at two U.S. refineries are a main reason why gasoline prices have risen dramatically in the past month, Patrick DeHaan, senior petroleum analyst for GasBuddy, told the Daily Ticker.
The price of regular gasoline jumped an average of 25 cents nationwide in the past month to $3.68 a gallon.
To help alleviate the problem, DeHaan said new refineries are necessary, but "red tape" to open one is too daunting for any company.
He added that current refineries need to operate better. "We should look at the oversight of these facilities," DeHaan said on the online television show. "They constantly seem to be breaking down."
U.S. refinery shutdowns are not the only reason for rising gas prices however. Several geopolitical events have contributed, including production outages in the South Sudan and North Sea.
Closer to home, DeHaan said the rising price of ethanol due to a drought in the Midwest has also contributed to the price spike.
"Ethanol prices may continue rising for at least another month or two and that will continue to put upward pressure on gas prices," DeHaan told the news outlet.
Looking ahead, DeHaan predicted on the TV show that gasoline prices will start to fall after Labor Day and bottom out between Thanksgiving and Christmas.