Local Gas Prices On The Rise
posted 6:29 pm Tue November 13, 2007 -
The rate hike at the pump is becoming more and more frustrating for South Carolina drivers. But, there could be some relief in sight. Oil dropped two dollars on Tuesday to around 92 dollars a barrel, but industry experts say pump prices will continue to rise before they level off.
Prices may change but for the most part, but drivers stay the same. “Most of us while we complain about it we don't really change our driving habits much, a little bit here and there,” said Roger Hart of Mt. Pleasant. Hart says he tries to group his shopping trips together, to spend less time on the road and less money at the pump. Hart says most people don't look for ways to save on gas; he used to carpool to his job with a number of co-workers. “You give up some freedom to pool with 14 other people in a van, but there were only a few of us that would do it,” said Hart.
Pump prices are unusually high for this time of year; the biggest contributor tends to be supply and demand. For example, anything that effects oil production can drive the price up. “Hurricanes can affect supply and during Katrina it did and demand because people want more of it,” said College of Charleston Economics Professor Frank Hefner. He says there are no current problems with supply, making many wondering what is causing this spike in gas prices. “The speculative market and that is hitting us hard right now and the speculative market has really shot the price of oil up to 100 dollars a barrel which is unheard of,” said Hefner

Oil rose 20 dollars over the last two months, but speculators are lowering demand forecasts for the holiday season. That alone could lower barrel prices but Hefner says it’s a matter of time before we see the effects of those record oil prices. “The real shock to me isn't that prices are going up but why they are not higher,” said Hefner
Locally South Carolina is still one of the cheapest in the country. The state is one of only eleven states with an average below three dollars a gallon. The department of energy is predicting about a 20 cent increase over the next few weeks.
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