The Spiraling Price of Gasoline Bursts Through $3.00

By Stewart Douglas

The price of gasoline has risen to beyond $3.00 a gallon, figures released today reveal.

The price hike is the second increase in two weeks, signaling the impact of increasing oil prices and slowing refinery output

The price for a gallon of unleaded petrol has risen to $3.05, an almost 7 cent rise over the course of a week.  With prices looking set to continue to rise, this could be bad news for business, and the US economy on the whole.

Despite these drastic recent increases, the price still falls way short in comparison to the $3.22/galon level of May.

The news comes just days after OPEC, a consortium of the world’s most prominent oil producing nations, have been urged by international authorities to step up production of oil. 

The spiraling price of oil is set to be driving the cost of petroleum, despite cutbacks in production from the consortium responsible for 40% of the world’s supply. 

But under pressures from the IEA, it is hoped OPEC will agree to produce more oil in order to readdress the demand/supply discrepancy.

Meanwhile, the effect of the rise in gasoline prices is hitting everyday citizens hard, with some of the poorest communities worst effected.

The knock-on effect of increasing gasoline prices on the economy is large, particularly considering the importance of transport and machinery.  If gas prices continue to rise, many businesses may be forced to reconsider budgeting, whilst public transport companies would invariably increase the cost to the general public.

It is also thought that production problems in US-based refineries have been responsible for the lower supply of oil leading to these price rises; a factor which OPEC also blames directly for the alleged crude oil supply shortages.

OPEC meets later this year to discuss strategy in maintaining and monitoring oil price and supply over the coming twelve months.