LOUISVILLE, Ky. — Every summer the price of gas increases, typically due to people traveling for summer vacations, but right now a number of factors are leading to an unusual increase in the price you see at the pump.
As of Aug. 15, the average price of gas in Louisville is $3.91. That's up nearly 35 cents from last month's average, according to GasBuddy.
"There's a lot of abnormalities happening right now," said Patrick De Haan, head of petroleum analysis at GasBuddy.
Here's what is contributing to increased gas prices in our region and when we can expect prices to go back down.
Why are gas prices increasing?
In June, Saudi Arabia was charging roughly $65-$66 a barrel for crude oil, De Haan said.
"The Saudis were a little bit unhappy because their budget requires oil to be over $80 a barrel and to make ends meet, so to speak," he said.
In July, Saudi Arabia cut oil production and extended that cut into August, and now September.
"The global market needs more oil, and the Saudis, and also the Russians now, are providing less," De Haan said. "That is what's fueling oil prices higher."
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Refinery issues across the United States have also contributed to the problem. Texas and Louisiana are home to over half of the nation's refining capacity, which is already a very delicate process.
That process has been hindered due to the recent extreme heat in the South.
"Because refineries are outside, exposed to the elements, heat can have a lot of issues," De Haan said. "Refineries operate at hundreds of degrees of temperatures, and if they can't adequately cool their units, that becomes a problem."
He added that the extra heat can cause oil inside the refineries to expand.
"When you process oil that's hot, you're gonna have less capacity, essentially, to produce the same amount of volume," De Haan said. "These all can impair a refinery's ability to produce as much gasoline as it needs to."
Along with issues in the South, a refinery in northwest Indiana began maintenance on its system three weeks earlier than expected. De Haan said that process could take an average of four to six weeks to complete.
When will prices go back down?
Unfortunately, De Haan doesn't expect prices to go back down in the coming days or weeks.
"We do tend to see some relief starting in the fall, especially when we switch back to cheaper winter gasoline -- that happens in mid-September," he said. "So you know, if there's a door or a window of opportunity here to see gas prices falling, I would say it's probably between mid and late September and late November."
Despite this, he said a number of factors could offset any relief including the continued high cost of oil and even severe weather, like hurricanes.
"We don't know what hurricane season is going to hold, so if there was a major hurricane, that could cause prices to go up even more dramatically," De Haan said.
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