Gasoline Prices Moving Closer to $4 in Harrisburg Pennsylvania

Gas prices today are moving closer to the $4 per gallon “danger zone” in Harrisburg, PA. The increase is greatly attributed to market interruptions caused by Hurricane Isaac.

Current gasoline prices are at their highest levels seen this year during a period when they are usually expected to fall. In June of 2008, Harrisburg posted its highest-ever gas price at $3.99 per gallon. This year, the highest gas price level reached was on April 12, at $3.97 per gallon.

Harrisburg’s gas prices today now range from a low of $3.86 to a high of $4.35 per gallon. The latest data shows that the average gasoline prices today in Pennsylvania, Hawaii and Mississippi are $3.93, $4.34 and $3.59 per gallon, respectively. That compares to the nationwide average of $3.86 per gallon.

The price of gasoline rises when supplies drop. When hurricanes hit the Gulf Coast, refineries close down, which means that 25 percent of the refining capacity of the United States is affected.

Although the current gasoline prices in the area look bad, it is even worse in New Jersey, where at least 50 Lukoil stations posted a gas price of $8.99 per gallon. The move by independent Lukoil franchise owners was a way of protesting the unfair wholesale pricing practices by the company that put them at a disadvantage.

Gasoline prices are projected to begin falling within the coming 10 days. In fact, Harrisburg has been spending 20 percent extra on gas as a “hurricane premium.” For this region, prices are expected to fall within the $3 to $3.20 per gallon range by December of this year.

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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