Louisiana Seeing Gas Prices Rising

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Even though summer vacations are in full swing, there has been a decrease in demand for gasoline, but the cost of gasoline in Louisiana has jumped up fifteen cents a gallon since last week. The statewide average price for a gallon of regular gasoline is $3.36 according to AAA.  Crude oil prices and other factors have influenced the price of fuel, according to Fuel analyst Don Redman.

“It’s more of a case that you’re seeing a weakening dollar which of course pushes the price of crude up. There’s no doubt that it’s a sign of weakening supply.”

Crude oil prices were down at 67 dollars a barrel last month. Redman says oil-producing countries recently agreed to hold back oil production on crude driving prices higher.

“Other oil-producing countries that are aligned with OPEC have also been cutting back production and that was something that was put into place a couple of months ago. It’s taken that long to work through the market.”

The current average is still less than the price of a gallon of gas from this time last year, when gas was at $3.89 a gallon. Redman says scorching temperatures have forced refineries to slow down and motorists to travel less…

“Refinery capacity has absolutely slowed down because of the higher heat but that’s also one of the reasons that there’s less demand. People aren’t traveling right now or they’re not traveling as far or staying as long because of the heat.”