More Gas Blues...

As The Blue South points out, lurking behind the increase in gasoline prices are the rises in heating oil and natural gas prices.

I Know Its Almost Summer And All...

Typically, the prices for these heating products decline during the summer because of decreased demand, but instead, the run-ups have been quite spectacular, reaching record highs. Unfortunately, that means that staying warm will be much more expensive this winter. To prepare for these costs, utilities are already seeking regulatory permission to increase consumer natural gas rates; expect many more announcements to come. So far, most of the requests range from 15-25 percent; the more successful the utility has hedged the increased rates, the lower the increase should be (hopefully). Once again, the loser are the consumers. Consumers, unable to afford the increases, will curb demand, theoretically leading to lower wholesale prices; however, the utilities will have already locked in the retail price, thus pocketing the spread. However, because a de facto price floor has been established, speculators and investors in natural gas can bid the price up even as demand decreases.

Gas rates to nearly double
PSE&G seeks 20 percent increase in natural gas rates
Ameren says natural gas rates going up in Illinois
Elizabethtown Gas Requests Gas Cost Increase to Cover Rising
Missouri Gas Energy's Western Missouri rates will rise
PECO to increase natural gas prices