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Updated: 9:33 p.m. Friday, March 30, 2007 | Posted: 8:53 p.m. Friday, March 30, 2007
According to elpasogasprices.com, the average price for gasoline in El Paso is $2.60 for regular unleaded gas. Last week, it was at $2.49 a gallon.
Friday afternoon, Rafael Gonzalez was filling up his Cadillac Escalade before his weekend getaway to Ruidoso. But, with gas prices up, Gonzalez said he plans his trips carefully.
"Because it's so big. It's a V-8. It makes you think how far you want to go on a road trip because gas is so pricey now," he said.
Economists don't know how much longer prices will be up, but they speculate the recent spike has to do with a conflict between Iran and Britain.
A week ago, 15 British sailors and marines were captured for allegedly being in Iranian waters. The European Union has asked for their release, but the request has been denied.
Tom Fullerton, an economist and professor at the University of Texas at El Paso, said crude oil supply hasn't changed since the capture of the British sailors. However, he believes if the conflict intensifies, the price of crude oil could go from $66 a barrel to $75 a barrel.
Fullerton also credits other conflicts overseas for the current spike in prices.
"There's a strike taking place in France in the city of Marseille, where one of the largest European gasoline refineries is located. If that unit remains off-line for an extended period of time, that is going to directly reduce gasoline supply here in the United States," said Fullerton.
The strike at the French Mediterranean oil terminal Fos-Lavera, the world's third-largest port for refined oil products, started March 14 when GDF rejected a union demand that only port staff should hook up liquefied natural gas cargoes at a GDF terminal due to start up at the end of 2007. Their full closing would slash 7 percent of European refinery capacity.
Fullerton suggests gas prices in the U.S. could go up to $2.80 if the refinery completely shuts down, but he said he doesn't believe prices will pass $3.
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