The three factors cited in recent news reports in my area are:

1. The changeover to "summer blends" required to meet emissions requirements results in a seasonal reduction in refinery capacity. This should produce a temporary "bump" in prices - but probably more up than back down.

2. New fuel additive requirements go into effect in many US areas, recently or very soon, which will result in "higher priced" additive use, which will probably be a more or less permanent increase.

3. Trouble in Venezuela, which is the largest single source for imported US crude.

And Mr Ripley says...Believe it or Not(?)

With decent weather comming on, there is a seasonal increased demand, and there probably is some increase in transport costs to put larger amounts of fuel "out on the road" for spring and summer travellers. One does suspect that "if they want it bad enough they'll pay for it" has something to do with it.

Recent estimates anticipate that prices for this spring should peak near $3.00 (US average) per gallon for the lowest grade - probably nearer $4.00 if you need a "premium" grade, and prices for the lowest grades in some "high cost areas" may hit $4 or $5.

California, Nevada, Alaska, and Hawaii are currently showing the highest pump prices.

John