Chicago on its Way to Set Record High Gasoline Prices this Year

The Chicago area is about to set another record by the end of this year as one of the states with the highest gasoline prices.

According to the report of Mike Krauser of WBBM Newsradio, the current gasoline price average in Chicago this year is $4 per gallon. Nationwide, the year-to-date average gasoline price today is also at a record high of $3.63 per gallon.

Drivers in Chicago have never spent as much as they have for gasoline in the past years as they have been spending this year, according to the latest data.

To move lower than the state’s $3.83 a gallon average last year, the current gasoline price average in the area must drop within the range of $2 per gallon for the remainder of the year.

In 2009, the average gasoline price in Chicago was $2.51 per gallon. In 2010, it was at $2.99 per gallon.

Analysts attribute these price dislocations to the supply side; specifically, many question wonder local refineries are making sufficient amounts of gasoline.

It is in the refineries’ best interests not to make the amount of gasoline that American drivers demand. The reason for this is that if there is too much production in refineries, there will be an increase in supply, which consequently leads to lower prices. As such, that is surely something that analysts have long been long skeptical about.

For next year, it is likely that we will see more stations charging rates similar to the gasoline prices today. We may even see another possible high record for gasoline prices in 2013.