What is causing gas prices to climb higher?

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Posted: Wed 10:13 PM, Sep 12, 2012

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Reporter: Kevin Hurd

Updated: Thu 1:25 PM, Sep 13, 2012

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What is causing gas prices to climb higher?

Eau Claire, Wis. (WEAU) -- Adam Boll makes a daily commute from Eau Claire to Mondovi each day where he is a school band director.

"I carpool when I can, not really any other strategies," he said.

50 miles roundtrip each day, $3.99 a gallon, you do not need to do the math to know his gas bill is big.

"I usually wait till the very last minute because no one wants to pay that much but usually it's around $65," Boll added.

Whether you are driving 50 miles or five miles, it is getting tougher to stretch your dollar.

"After Labor Day we usually see a pretty significant dip in gas prices because demand goes down, but we haven't seen that yet," said Erin Roth, the Executive Director of the Wisconsin-Minnesota Petroleum Council.

He says higher prices have to do with demand at the end of the summer, ongoing problems at a Chicago oil refinery, and the instability in the Middle East.

"That is due to what is going on in the Middle East and the attack on the US ambassador and his staff," Roth said.

He says those problems in Libya and escalating tension between Israel and Iran has kept prices up, and there is the potential they could go even higher.

"That's something we have to watch because if there's any kind of military conflict in the Middle East, we have to expect crude oil prices to move higher," said Gregg Laskoski, a Senior Petroleum Analyst for Gasbuddy.com.

It's trickle-down economics, where ultimately people like Adam Boll end up paying more. Making small cuts in other areas to accommodate.

"I'm doing some remodeling so you always have to watch your budget, so you have to watch your money," Boll added.

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