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Summer Gas Prices Expected to Rise, but Not to 2008 Levels
While many Americans shudder while thinking about gas prices last summer, they can take comfort because according to an expert, they shouldn't get that high again anytime soon.

Illinois Petroleum Council Executive Director Dave Sykuta says last year it was a perfect storm of factors: supply threats such as intense wars in the Middle East and hurricanes in the Gulf Coast , demand increases, and a powerful economy. This year, the economy and significantly decreased demand are responsible for the lower prices.

Sykuta says prices are starting to rise slowly because the economy is improving, which is OK for him, because he says he'd rather have moderately high gas prices with a strong economy.

He doesn't see price gouging as a problem because the Illinois Petroleum Council works with the attorney general's office on a daily basis, and has never seen or heard of a substantiated case of price gouging. But he does say it's not uncommon for prices to fluctuate. In Central Illinois , he says that's caused by what he calls "new era marketers" such as Wal-Mart, Costco and Target. Those stores sell much more than gas, and are able to offer gas discounts to customers who buy a certain amount from the store. To compete, the stand-alone stations sell gas for a lower price than what they bought it for.

Eventually, Sykuta says not making a profit will cause them to spike prices suddenly, only to drop them again shortly.

(Illinois Radio Network)
05 03 09 by Newsroom
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