The average price of gasoline in the Triad jumped 14 cents in the past week — and it probably won't go back down anytime soon, experts say.
The average price of regular unleaded gas was $2.49 a gallon Tuesday, up 8 cents from last month's average of $2.41, according to AAA Carolinas. The record high in the Triad was $4.11 on Sept. 15, 2008.
In North Carolina, the average price was $2.52 a gallon yesterday, compared with $2.38 a week ago and $2.43 a month ago. The state record high was $4.09, reached Sept. 15, 2008.
Brendan Byrnes, a spokesman for AAA Carolinas, said that three factors are to blame for the spike.
* Investors are optimistic that the economy is turning around and that demand for gas will go back up.
* Refineries are shifting more of their resources to producing heating oil as opposed to gasoline, and forecasters are predicting a very cold winter this year.
* The recent weakness in the U.S. dollar has also affected the price of gas.
"Oil is traded in dollars, so when the dollar is weak, oil is seen as a good buy, and investors around the world pick up on it," Brynes said.
Crude prices have risen quickly this month. They reached $80.05 a barrel Tuesday before falling below $80 when the dollar went into positive territory against the euro. Benchmark crude for November delivery fell 52 cents to settle at $79.09 on the New York Mercantile Exchange.
Mike Walden, an economics professor at N.C. State University, said that the high oil prices are in response to signs of improvement in the world economy, particularly in Asia.
"So it's demand driven or purchasing driven," he said. "We still have a problem with too much usage of oil compared to the supply. The reason oil prices went down so much during the worldwide recession is businesses cut back, consumers cut back and factories cut back. Now that some of that is resuming, you're going to see an upward climb in oil prices and that will definitely push up gas prices."
AAA Carolinas expects prices to keep going up, but not as sharply as they have the past week.
Brynes said it's hard to know what will happen over the holiday season.
"Thanksgiving is the biggest travel holiday in the U.S., so that may keep prices going up into November," he said.
