Chance of Gas Price Relief Slim

According to a press release from American Automobile Association of the Carolinas, prices for gasoline in North Carolina are the highest they have been since the association began recording such data 20 years ago.

The press release stated that the average price per gallon of gasoline in North Carolina on Tuesday was $1.565, a 20-cent jump from a month ago. The national average is even higher at $1.624 per gallon.

Aaron Brady, senior analyst for Energy Security Analysis Inc., an independent research firm that examines the prices of different energy sources, said the nationwide increase is a result of several factors, including limitations on domestic gasoline.

"The U.S. hasn't built a new refinery in 20 years or so," he said. "There's no room to make more gasoline, so we have to import it."

But Brady said the biggest problem is new requirements for how gasoline is produced.

"Environmental specifications for gasoline since last summer have been tight," he said. "Refineries are just unable to make cleaner-burning gasoline."

Brady said the new standards have been proven to reduce air pollution, especially in cities like Los Angeles that produce a great deal of smog.

He said the new standards mean prices will not go down significantly in the near future, but federal waivers might provide relief to areas of the U.S. that do not produce as much smog.

But Brady added that the high prices do have a positive side.

"The one good thing about high prices is that it means the refineries are making a lot of money," he said. "If the U.S. refineries are making tons of gas, it will drive the prices down."

But he said prices will likely stay high through the summer when many people hit the roads for family getaways.

Tom Crosby, vice president of communications for AAA of the Carolinas, said the situation might turn out better than experts thought because the Organization of Petroleum Exporting Countries reneged on talk of cutting production.

But he said the association has already noticed fewer travelers looking to plan their summer vacations.

"We have already seen evidence that people are cutting back on cross-country trips," Crosby said. "They are waiting to see what's going to happen."

The high prices are also causing a strain on people who depend on driving to make their living.

"Businesses that rely on gas are feeling the pinch," he said. "It will eventually affect airline prices as well."

Mike Schweitzer, a delivery person at Domino's Pizza in Germantown, Md., said he spends up to $35 more a month on gas than he did a few months ago. He added that the extra expense is hindering his profit.

"I usually fill up about every day or every other day," Schweitzer said.

"I have to put up more toward gas and I don't get much back (from Domino's)."

The State & National Editor can be reached at stntdesk@unc.edu.