Gas prices rise despite decreased demand

Gas supplies are exceeding demand, so theoretically the prices at the pump should be falling. Instead, prices are rising, apparently being driven higher by rising wholesale prices.

The price of crude oil fell $3 a barrel over the past week. According to Retail Fuel Watch, wholesale prices rose by an average of 32 cents per gallon during the past month. The wholesale increase is coming at a time when gas prices are usually falling.

In his weekly news release on gas prices, Gregg Laskoski, managing director of public relations, AAA Auto Club South said that while "The fourth quarter is typically the time of year when retail gasoline prices are at their lowest, in coming weeks there’s a chance we could see Florida prices between $2.80 and $2.90. And this is with excess supply and little demand.”