Current Gasoline Prices Rise Again in Connecticut

Although drivers enjoyed a quick fall in the prices of gasoline during the early parts of the present year, they have surged once again.

But not everybody believes that the sharp increase in current gasoline prices is still caused by the Gulf of Mexico’s interrupted crude production due to Hurricane Isaac.

One theory is that gasoline prices today reflect a too-sharp rise that Connecticut’s Department of Energy and Environmental Protection has warned the state’s attorney general that state price gouging law may apply.

For instance, the wholesale gasoline price in New Haven grew by 19.9 percent, from its rate of $2.68 per gallon on the 28th of June to $3.214 per gallon on September 13.

According to Michael Fox of the Gasoline and Automotive Dealers of America, the latest 10-cent fall in the rate of each gallon of wholesale gas was not reflected in the current gasoline prices.

The process of establishing that price gouging exists is a complex one and, in spite of various suspicions, those kinds of charges are not usual.

Even when prices fall, drivers in Connecticut will not see the same relief that they may see if they go to either Rhode Island or Massachusetts, where gasoline prices today are relatively low.

Last weekend, the price of regular gas in many service stations in Connecticut was higher by almost 22 cents compared to its price in Massachusetts. This is due to the higher gasoline taxes in the state.

The gasoline tax in Connecticut consists of both a 25 cents per gallon retail tax and an extra 7.53 percent tax on the wholesale price which accounts for an additional 23 cents per gallon.

By comparison, the retail gasoline tax in Massachusetts is 21 cents and the state does not have any tax on wholesale gas.

Even if the gasoline prices in Connecticut fall, drivers in the area will still spend more to fill their tanks compared to other states.

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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