Local News


Why are gas prices back up?

Posted at 5:40 PM, Apr 05, 2016
and last updated 2016-04-05 22:55:34-04
Gas prices are back on the rise. The average in Las Vegas for a gallon of regular gas is $2.45, up nearly 50 cents in the last month.
The dramatic drop in gas prices last year has us feeling the sticker shock with the recent rise in gas prices.
"When it comes to gasoline, it's one of the most frequent purchases people make," said Hugh Anderson, a financial advisor with Hightower. "So when it goes up, they get very irritated because they're doing it every week."
Anderson said there are several reasons gas prices are making the trip back above two dollars, one of them having to do with the time of year.
"Most refineries, especially in the west, are running at about 90 percent capacity because they're getting ready to build inventories because we all do a lot more driving during the summer months," he said.
Refineries also have to prepare for the release of the new summer blend of fuel.
There was also talk from Saudi Arabia and some other Middle Eastern nations about creating a freeze on prices going forward. 
Anderson says the odds of that agreement actually taking hold are very low, but it did create an environment for the price of gas to go back up.
 Anderson wants us all to keep in mind gas is still about 25 percent less expensive than it was a year ago.