NEW ORLEANS (WGNO) – Prices at the gas pump have dropped slightly since President Joe Biden released the strategic reserves, but drivers can soon expect yet another price increase.
The statewide average price of gas is currently $3.95, which has come as a sigh of relief for some, considering the state is down 21 cents from the state’s previous high a couple of months ago.
However, refineries are now switching out their winter-grade fuel for their summer-grade fuel.
Crude oil is about one hundred dollars per barrel whereas a month ago, it was about $130.
“A lot of the price hike that we have seen this year is largely related to the price of crude [oil], but at this particular point in time, not only is it in relation to the price of crude, but also demand, which is picking up, and the fact that we’re making that transition to the summer-grade gasoline,” explained Don Redman, a spokesman for Tripe A Louisiana.
Every year, refineries switch out the winter-grade fuel for the summer-grade fuel, a gasoline that burns easier and is less volatile.
Once that happens, drivers can expect a ten to 50-cent jump at the pump.
“To throw that in the mix is just like ‘wow,’ like, ‘Oh, now we just have something else, another stress, another barrier, that we have to face,’ and I think it’s sad,” said driver Caroline Guichard.
Some drivers believe they can’t handle another price increase.
“How like the economy is going, like inflation and everything, like some people can’t afford it,” said a group of men who stopped at the gas station after traveling from Florida. “It’s already hard to find good jobs, [and] people [are] trying to get by. This ridiculous.”
According to Redman, the recent spike in gas dampened demand, which may affect future prices.
“If that continues in the summer, maybe the increase in prices won’t be as dramatic,” said Redman. “But if we have continued unbridled demand for fuel products, I think you’ll definitely see those prices go upward as we get closer to May and into June.”
Service stations have a deadline of June 1 to start providing the summer-grade gasoline.