Gas Prices Defy Prediction And Go Up After Labor Day

The prediction was gas prices would go down after the Labor Day holiday, so why the sudden increase in prices around Grand Junction and much of western Colorado?

If you're like me,  it seems the price of gasoline around town has jumped quite a bit over the last couple of weeks.  One station near my house went from around $2.65 a gallon to almost $2.75 a gallon this week alone. I bought gas a couple of weeks ago and paid less that $2.60 a gallon.  According to Colorado Gas Prices, gasoline around Grand Junction this week ranged from $3.52-$3.89 a gallon.  Diesel fuel was as high as $4.29 a gallon at a couple of locations.

Why the sudden upswing? The U.S. Labor Department's producer price index, which measures price changes before they reach the consumer, reported wholesale gasoline prices jumped 13.6 percent in August, the biggest increase in three years. The increase is due, in part, to Hurricane Issac's disruption of Gulf Coast refineries that slowed production and also delayed refineries switch from summer blend to cheaper winter blend fuel.

There is a bright spot, though. Experts are predicting prices will begin to drop within the next week or two easing the pain at the pump.