Fuel Price Set to Rise Again

Based on the factor below:
• Refineries struggle to meet demand
• Prices have risen by 2.3% in a month
• Experts warn of a possible 60% rise
Local residents aren’t the only ones feeling the financial pinch of rising fuel prices. As gas continues to climb toward $4 a gallon, local governments are scrambling to find ways to keep their vehicles running.
Drivers are being warned that fuel prices will rise steeply in the next six weeks, as refineries struggle to provide enough oil to meet demand.

A Europe-wide shortage of capacity at refineries was further exacerbated by the recent strike at the Grangemouth refinery in Scotland and a fire at a Finnish plant. The warning came after The Office for National Statistics reported that the price of petrol products leaving refineries had risen by 2.3% in a month.
Boone County Commissioner Huck Lewis said the Highway Department has eaten up a large chunk of their fuel budget for the year and may be out of gas money by June or July. If that happens, the department would have to use other funds in the county budget.
Lewis said the county isn’t putting any restrictions on employee drivers, just asking them to rely on their common sense.

Last week, Goldman Sachs, a US investment bank, said that oil prices threaten to hit $200 a barrel over coming months as producers struggled to keep pace with demand from China and the Middle East.
That would represent a rise of more than 60% from the current level of $125 a barrel.