NEW ORLEANS - Most people have noticed prices going up all across Southeast Louisiana, and you aren’t alone.
Gas prices all over the country are skyrocketing. The price for crude oil is the highest it’s been in three years, and experts think it’s going to get even more expensive. According to AAA, the average price for gas in the city of New Orleans is $2.52.
Compare that to last year, where we paid an average of 2.15 at the beginning of May.
There are a couple reasons for the increase in price: It’s basic economics with supply and demand. OPEC cut back on oil production last year. In the US, supplies are also lower. According to the Associated Press, oil supplies were running 1.1 million barrels lower at the start of the summer’s driving season (April-September) than a year ago.
All across the world, demand for oil has gone up. Specifically, in the United States, consumers used a record amount of gasoline in April. With an increase in demand and a decrease in supply, the price is naturally going to go up.
Gas prices normally go up every spring, through Memorial Day, and then go down slowly as the summer continues. So, there may be some relief in sight, as soon as we get through this month.