Posted on: 05. 26. 21
The weather is warming up, people are getting back to work, and more vehicles are hitting the road than they have in the last year. Whether it’s an increase in traffic, a new President, or unprecedented pipeline hacks within the industry, those on the road are noticing a consistent increase in gas prices.
Is there a deeper reason behind increasing gas prices this summer, or is more expensive gas something that Americans typically face at this time of the year?
The team at Pro-Gas, LLC digs into industry issues for our readers; and we’re eager to show you our findings.
How Much Have Gas Prices Increased This Year?
Although many people are accustomed to summer gasoline price inflation, the truth is that due to the pandemic, this year’s increase is hitting us a little bit harder than those in the past.
According to a Consumer Price Index Report from the US Bureau of Labor and Statistics, gas prices have risen over 22% throughout the last year, and in the last month, have increased 9% since March.
Even for a seasonal increase, these are steep numbers that experts predict will cause some of the highest summer gasoline prices we’ve seen in years.
However, while it’s normal for consumers to feel frustration at the pump, seasonal gasoline price increases should never be a surprise. Like every other annual event, with summer comes more expensive fuel.
Summer Retail Deadlines Cause Increases
Did you know that there are winter and summer blends of gasoline? Not many people do, but this is one of the leading causes of a summer price increase. During the spring months, gasoline terminals are trying to purge winter fuel from pipelines and feed in summer fuel to consumers.
There are industry deadlines in place for the purging of winter gasoline and the production of summer fuel. While pipelines are key resources to getting gasoline to consumers, the travel time between the terminal to the terminal can sometimes take weeks and causes a terminal to miss the May 1 deadline. So, once summer starts to rear its head, not all terminals have received ample gasoline resources.
As demand for gasoline increases with travel, prices naturally rise because there simply isn’t enough of a summer blend available to offer at lower prices.
Reduced Butane in Gasoline during the Summer
The actual makeup of winter and summer gasoline blends even influences their prices. We switch blends in our industry based on the Reid Vapor Pressure in the gasoline, which measures how quickly the gasoline evaporates with heat.
Butane is a relatively inexpensive gasoline chemical that is added to winter fuel to increase its RVP and help it evaporate faster. Since summer provides a natural heat for evaporation, then the need for the fuel additive becomes less essential and the quantity of Butane is drastically reduced.
In turn, the decrease in Butane increases the price of summer gasoline.
Follow the Flow of the Industry with Pro-Gas, LLC
If you’re concerned about the progression of the industry as the nation begins to reopen, the oil and gas experts at Pro-Gas, LLC has your latest updates covered.
We are a Dallas-based distribution company that provides top-quality facility and oil site equipment to oil and gas companies across the nation.
Contact us today to learn more about our current products and services.
