In a quick drive around the Roanoke area, we found unleaded prices at $3.53, $3.57, and up to $3.59. They've been on the rise for weeks, and there doesn't seem to be any end in sight.
Economist Dr. Kasimir Dadak teaches at Hollins University and he says the recent spike at the pump comes from international political issues.
"The upheaval in the Middle East, especially the problem with Iran that threatens to close the Straight of Hurmuz,” said Dadak.
He says the recent tension in Iran has cause the price of crude oil to go up 15%.
"Over the last three weeks, the price went from low $90's to low $100's,” said Dadak.
Virginia's typically well below the national average, but today we're the closest we've been to the national average of $3.58 since hurricane Katrina.
So why are prices up here in Virginia?
AAA sent out a news release Wednesday saying quote, "Virginia's source of crude oil and the closing of crude oil refineries, which supply the East Coast are both contributing to higher gas prices in our area."
"Prices will go up very, very significantly,” said Dadak.
When I asked him how high he thinks it could get and he said, “Oh, it could exceed five bucks easily."
He says $5 a gallon could become our new reality as early as this summer, which will have severe trickle down effects to everything from food prices to tourism.
Email
Facebook
Google
Twitter
Favorites
More
Advertisement