INCHING UPWARD

Gasoline prices in the Teche Area have begun their annual migration upward in recent weeks.

Good news for the local oil and gas industry-dependent economy, Louisiana Oil and Gas Association president Don Briggs said. Not so good news for the wallet when residents are faced with shelling out more at the pump during peak summer travel plans.

Briggs said people should keep rising fuel costs in perspective.

“Because New Iberia has experienced some unemployment from the oil and gas industry recently, the community stands to benefit when barrel prices rise,” he said. “Gasoline prices rise with oil prices.”

St. Martin Oil and Gas President Jimmy Poirier said the best explanation for rising prices is simply the drastic change seen recently in barrel prices, which are double what they have been in the last few months, now hovering around $70 per barrel.

“For our local economy that’s a big positive and hopefully we will see our economy receive a little benefit from that,” he said. “Summer time driving and the vulnerability of hurricane season are speculating the price aspect of it a bit.”

He also said because pump prices have been reasonable since oil topped out at $147 per barrel last July, many people are back to their “old consumer habits.”

Briggs said one of the factors for the annual summer season increase in gas prices is the switch to summertime blends.

“There are over 20 blends of gasoline,” Briggs said. “The summer blends, to meet the EPA’s emissions requirements, are a little stricter making those blends typically more expensive and those fuels are being put into the market place.”

EPA standards for ozone impact from fuel, which are higher in some places than others, also explain some of the difference between regional fuel prices, Briggs said. Higher standards for gasoline blends are usually found in larger cities Briggs said adding some of the highest standards are found in California which usually makes headlines for having the most expensive gas. Standards for most communities in Louisiana are much lower than those imposed on other states.

Another factor that affects gas prices from one region to another is the taxing structure imposed on fuel.

According to the Energy Information Administra-tion, the cost per gallon of gas breaks down with roughly 13 percent going toward state and federal taxes, 8 percent toward distribution and marketing, 8 percent toward refining and 72 percent toward the purchase of crude oil.

Most agree stabilization in the marketplace would be beneficial to those in the industry and consumers alike.

“A lot of people in the market were hoping for $70; we’re there now,” Poirier said. “Hopefully we can stabilize the price of fuel.”

Current pump prices are more budget friendly than last year’s nearly $4 per gallon. And although $70 per barrel is what industry leaders have been hoping for, activity in the oil and gas sector remains cautious experts said.

“Let’s face it, $2.40 gasoline is not a bad price,” Briggs said. “But, there will be continued concern in the industry until we have a firm understanding of what direction Washington is going with its proposed budget and programs they are discussing that will impact the industry.”

According to InternetAutoguide.com, the average price of a gallon of gasoline is $2.599 in New Iberia; it’s a penny per gallon cheaper for the statewide average. The national average, according to the Web site is $2.689 per gallon.