Study: Gas prices high due to summer, Iraq conflict

Published On: Aug 06 2014 09:10:08 AM EDT
Updated On: Jun 25 2014 10:00:40 AM EDT

Gas prices are expected to continue to climb this summer which is typical during the vacation months.

JACKSONVILLE, Fla. -

Good news and bad news when it comes to gas prices.

The bad: Prices will continue to rise this summer, which is typical during the vacation months.

The conflict in Iraq is also contributing to the rise.

The good news: We can expect to see prices go down this fall.

A local financial planner said we'll see an abundance of supply later this year. But for now, people are paying 11 cents higher for gas than in 2013 and those prices are expected to keep rising.

“It could be an increase of about 10 percent were about $3.50 a gallon here on low end premium is about $3.80 to $3.90, expect about another 10 percent increase as we continue into the summer months,” said Titus Pittman.

Financial Planner Titus Pittman said gas prices will continue to rise this summer. He said that's typical each year during vacation months and said the conflict in Iraq where most of U.S. oil comes from is not helping.

In a new Lundberg survey released this past weekend, the average price for a gallon of regular gasoline is $3.71. That's higher for this time of year than in six years.

That average price also surpasses this year's peak of $3.70, which occurred in April.

Pittman said there is some good news though. He said in the process of extracting and refining oil there's a five to six year lag time. He said we are coming up on that period, which means there will be an excess of oil.

“”It’s coming up where we have an abundance of supply we expect by the end of the year going into fall, we will see a decrease in oil prices and that should continue for the next decade about 10 percent per year,” said Pittman.

Pittman also has some advice for drivers to try and save money. If you're looking for a new car, try to find a more fuel efficient car. He also said don't wait until the last minute to fill up.

If you have the money, go ahead and do it because he said there's a good chance prices will be up the next time you try to fill up.

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