Current Gasoline Prices Decreasing in Kansas

Gasoline prices in Kansas City are moving down after reaching a peak of $3.72 per gallon before February ended. In the city’s metro area, the average price for each gallon of regular unleaded is around $3.33.

AAA’s Public Affairs Vice President, Mr. Michael Right, said that the major cause of lower prices is the yearly improvements that refineries are enacting. Spring is usually a maintenance period for the majority of refineries, which includes the switching of production from winter to summer blend gas.

However, residents of Kansas City must take advantage of the cheaper prices, since history shows that the price of gasoline usually posts a sharp rise in spring.

Right said that the gasoline prices today are not yet that high. He added that drivers should be spending less in the months of July and August instead of May. However, that is just according to history and anything may happen.

Following a quite steady period, the industry is beginning to see an increase in per barrel crude prices. The price of wholesale gasoline has also been fluctuating.

The coming activity that the crude industry will watch closely is when refineries start to redistribute their fuel allocations, shifting to summer from winter gasoline. The decline in the gasoline price today may be caused by a surplus of winter fuel as refineries try to bring the new summer blend gas to the market.

The excess winter blend gas may cause prices to further drop. However, no one can say with certainty how prices are going to move in the days to come.

By: Chris Termeer

Chris Termeer

Chris Termeer is an oil and gas consultant, industry commentator and analyst. His book, Fundamentals of Investing in Oil and Gas provides a comprehensive overview of all aspects of the oil and gas industry, including exploration, drilling, production, storage, transportation and refining, to name but a few.

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