Why are gas prices going up? Experts say demand is increasing, but supply is not

According to AAA, unleaded gas a year ago in Florida was $2.30. A month ago it was $2.48. Today it’s up to $2.71. 

"I know many on both sides of the aisle like to point fingers, but really it has everything to do with demand surging and supply has not," said Patrick De Haan, head of petroleum analysis at Gas Buddy

Demand is up, he says, because the economy is rebounding and people are going out more and thus filling up more. Supply, on the other hand, is down, in part because of that nasty storm in Texas last month. 

"That cold weather shutting down 20% of the nation's refining capacity -- a lot of gas that comes from Tampa comes from those Gulf Coast refineries," De Haan said. 

Also, oil prices are nearly double what they were last Halloween and production hasn't increased yet.

The bottom line: those low pandemic gas prices may not return for a while. 

"Florida could hit $3 per gallon on average in the next month and a half. It really just depends if we continue to see demand go up," he said. 


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