Gas prices in Columbus rise nearly 80 cents in the past 6 weeks
COLUMBUS, Miss. (WCBI) – If you drive, you know that gas prices are going up, almost daily it seems.
At some stations in Columbus, the price for regular has gone up about 80 cents a gallon in the past 6 weeks.
Most of that increase has come since the United States and Israel began attacks on Iran.
Iran’s retaliation on other oil-producing countries and the resulting bottleneck in the Strait of Hormuz have cut the flow of oil from the region to a trickle.
Some people are wondering, with the U.S. still producing oil at a regular rate, why is the situation in the Persian Gulf area having such an impact?
Frank Howell, a retired oil executive, explained that and other parts of the oil business today.
A large part of it is, even though oil produced here is being turned into fuel here, the price for crude is still tied to the World market.
“Again, because the oil went for about $60 a barrel, maybe had gotten up around 70, you know this is West Texas, intermediate, and then once they started the action over in Iran, all of a sudden, I think at one time it got as high as 119. So, the people at the refineries are having to buy at that price, and they’re selling it either to wholesale or retail markets, so they’ve got to recover their money,” said Howell.
While Howell is retired from the oil business, he is still active in another market, real estate. He spoke today at the Columbus Rotary Club.
