Wholesale Gasoline Prices Explode 20 Cents a Gal

September 28, 2012

Gas Pump (Photo credit: matteson.norman)

Holy Cow! Wholesale gasoline up 20 cents a gal. What will we pay for gasoline next week?

Gas explodes higher
Walt Breitinger Times Columnist

Gasoline prices rose to a five-month high this week, gaining more than 25 cents per gallon. Nationwide, gasoline stockpiles are relatively low, nearly 15 percent smaller than at this time last year. Ongoing turmoil in the Middle East has continued to keep prices elevated, but this week’s biggest move came on the heels of a refinery explosion. Although gasoline production is not expected to be affected by the event, news of the possible shutdown caused a wave of buying, pushing prices 12 cents higher on Thursday alone.

The price for wholesale gasoline for delivery in October, which excludes taxes and other expenses, was at $3.21 on Friday morning. Longer-term, consumers may see some relief, as wholesale prices for December delivery are nearly 40 cents lower.