Font ResizeNational retail gas prices rose for 16 straight days, according to AAA. In York County, costs averaged $2.736 a gallon Thursday, and in many locations, sold for $2.75 per gallon. On Tuesday, prices exceeded what they were 12 months before, the first time that's happened this year.
Theodore formerly worked in construction before the recession hit his business and forced him to find a new job. Though the gas-price increase might be slight compared with hikes in the past, he said he has been more aware of it because times have been so tough and because he now makes less money.
"It keeps going up," he said. "I don't know when it's going to stop. You have to start preparing now."
What drives costs
Rising costs of crude, signals of a recovering economy and a weakening U.S. dollar have contributed to the sudden spike in retail gas prices, said Ken Slaysman, associate professor of economics and finance at York College.
As the economy starts to rebound, people start to drive more. On the supply side, he said, the Organization of Petroleum Exporting Countries -- which provides about 60 percent of the world's gasoline -- dominates the market.
"As they see the world economy rebounding, they see it as an opportunity to reap some of the benefits," Slaysman said.
When demand begins to increase, OPEC pumps
When the dollar is weak
Though U.S. currency strengthened slightly Wednesday, its value impacts prices at the pump.
"The dollar weakening automatically makes anything that's produced abroad more expensive for us," Slaysman said. "Most of the oil we're using is coming from another country."
But the good news is that it makes U.S. products cheaper to other countries, which tend to buy more stuff, he said. "It helps us to rebound."
Cutting corners, mileage
Danielle Price of Dover said she again resorts to planning her trips around town to cut back on mileage since the recent upswing in prices.
She owns Price's Puppies & Pets Supplies on Loucks Road in York and said her job involves a lot of time on the road.
"It's getting very expensive," Price said.
She wanted to go to the York Galleria on Wednesday morning, but held off until later that afternoon when she had an appointment on the way.
"I make a list and do it in order," she said. "I try not to drive anywhere."
What to expect:
Price and other consumers might not see relief when filling up any time soon.
Slaysman said that as the economy continues to recover, gas prices will continue to increase. And although immediate costs hurt pocketbooks, those costs can lead to a more profitable future.
"Somebody's becoming confident that the economy is recovering," he said. "Down the road, we'll be looking at feeling more secure at our jobs, and other jobs coming back to grow again."
Slaysman said to expect normal seasonal-price adjustments that tend to decrease in November through January and increase in the spring and summer months.
"If indeed we are on the path to recovery . . . you could really see some pressure on gas prices in the spring."
The Associated Press contributed to this report.
lzaleski@ydr.com; 771-2059
