Gas Price Increase Not Expected To Last
February 1, 2012, 10:05 PM
SIOUX FALLS, SD -
Gas prices are on the rise again. On average, people in KELOLAND are paying a dime more per gallon than just a month ago.
Industry analysts predicted gas prices would fluctuate in 2012 and we're starting to see that happen. The average price in Sioux Falls is running at $3.29 a gallon.
"The economy isn't good, but people need gas to get to where they need to go, to get to work, so you have to pay. You have no choice unless you want to ride the bus or take a bike," Sioux Falls resident Cyndy Sterud said.
Mark Madeja with AAA Insurance says prices are up because refineries are starting to scale back production. With demand decreasing, most of us would expect prices to go down.
"At the end of the day, oil companies have to report to their boards of directors and shareholders and this is one of those unique situations where we absolutely don't like it because the person who is paying at the pump is not nearly as important as the bottom line profit margin," AAA spokesman Mark Madeja said.
Experts say the price of gas could fluctuate 25 to 40 cents per gallon, topping out at $3.50, but he also says that's anybody's guess.
"It can be bull one day. It can be bear the next. It's just a crazy thing to try to follow," Madeja said.
While Wednesday's prices are 20 cents higher than those a year ago, not everyone in KELOLAND is complaining.
"Everything is cheaper in the Midwest, food, gas, clothes, everything. You go to California, you won't complain about gas," Los Angeles native Mitchell Wynder said.
Madeja says analysts don't believe price spikes this year will be too serious or last too long.
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