I'm sure everyone has probably noticed a spike recently in gas prices.  I've heard some comments lately asking why prices have gone back up on gas.  This article found on the USA Today website gave some reasons for the price increases and said they may go even higher through August…

Strong demand for gasoline and tight motor fuel inventories will push pump prices higher in July and August, the government said Tuesday, but oil futures prices eased Thursday, which may soften the pain at the pump.

Retail gasoline prices are expected to average $3 a gallon this month and climb to $3.07 in August, the U.S. Energy Information Administration said in a monthly forecast.

“This is due to a combination of rising crude oil prices, strong demand for gasoline and low gasoline inventories,” the analytical arm of the Energy Department said.

The average national price of a gallon of gas jumped 2.6 cents overnight to $3.026 a gallon, according to AAA and the Oil Price Information Service. Gas prices, which typically lag the futures market, have risen 7.7 cents over the last week after falling steadily from a late May peak of $3.227 a gallon.

Analysts say the closure of a refinery in Coffeyville, Kan., due to flooding, and the shutdown of a huge piece of oil processing equipment at a BP refinery in Whiting, Ind., sent prices in the Midwest and Plains states sharply higher, boosting the national average.

Read the complete article on USAToday.com if you would like to learn more:

http://www.usatoday.com/money/industries/energy/2007-07-12-gas-oil_N.htm?csp=34

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