The average price for a gallon of regular gas in Louisiana jumped ten cents in the last week to $2.43. AAA spokesman Don Redman said while the demand for gas has yet to increase the price increase is being driven by higher crude oil prices.
“It’s all related to the fact that we’re seeing the price of crude oil continuing to climb. We’re talking now close to $60 or a little bit more than $60 a barrel,” said Redman.
A gallon of regular gas has increased in price by 26-cents in the last month in Louisiana.
Today the national average for a gallon of regular gas is $2.73.
Redman said the winter storms closed several refineries thus delaying production and with anticipation for a demand in gasoline the industry could soon be will be playing catch up.
“There’s a lot of speculation about demand ultimately opening up and once demand comes then you’re going to see the whole industry put in more drive to try to catch up with that demand,” said Redman.
While an increase in gas prices hurt the average consumer, Redman said however higher crude oil prices help the state economy.
“It’s a double-edged sword in Louisiana on oil prices. If it gets too low then you start talking about tax revenues, the state’s hurting tax revenues, it also can lead to layoffs,” said Redman.
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