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Why did gas prices go up?

by Laurie Waters

KMOV.com

Posted on September 1, 2010 at 5:56 PM

Updated Wednesday, Sep 1 at 10:17 PM

You gotta feel good about yourself when you broadcast something one night... and its no longer true the next - NOT!  We aired a story about the low gas prices on Monday night, and by Tuesday they'd shot up almost 30 cents.  So... we did another story explaining why they went up.  Of course, there are several variables that affect prices, but why so much so sudden?  Turns out the Phillips Refinery in Wood River, IL had a power outage and that interrupted service.  Lower supply with equal demand means higher prices.  Why not just keep pumping the gas you've got at the lower price?  Gas stations actually make their money off the convenience store items.  Run out of gas... run out of sales of drinks and groceries.  So they just want to reduce consumption, not end it.  Gas pricing is incredibly complicated - a mixture of suppliers, wholesalers, retailers,  formulations, taxes, market swings, governments, and mother nature to name a few.  But it appears this spike was impacted at least in part by the immediately preceding problem in Wood River.

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