Tuesday, May 12, 2009

environmental regs drive up gas prices every summer OR gas prices on their way back to $3 per gallon

The former title alludes to the common trade-off between the economy and the environment.

The latter title alludes to the probability that renewed economic growth, a weakened dollar, and extended regulation will take us back to an equilibrium price that is closer to $3/gallon than current levels.

From Alex Davis in the C-J...

Fuel prices spiked as high as $2.50 a gallon yesterday at many area gas stations, the second jump to hit Kentucky and Indiana in a week....

Rising pump prices are the norm for May as U.S. refiners switch to more expensive blends of gasoline that are required to meet state and federal clean air requirements....

Optimism over an economic recovery, or at least the belief that things may not get worse, have pushed energy prices higher with some expecting a rebound in demand....

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