Gas prices are going up everywhere in America, but some areas are harder hit than others. Hawaii has the highest average gas prices, followed closely by Alaska. In one Alaskan town, residents pay over $6.00 a gallon. Is this a sign of things to come for the rest of the country?
Almost definitely. Despite being one of the top oil-producing states in the U.S., many Alaskan towns are paying over $4.00 a gallon for gas already, and some places are closer to $5.00 a gallon. In the town of Bethel, a regional hub city of just over 6,000 residents (and the 9th largest community in all of Alaska) there are four gas stations with prices over $6.00 a gallon. The Detroit Free Press reports that residents of Bethel, Alaska, can expect to pay up to $6.34 a gallon for gas.
I often hear how domestic production of oil will lead to lower gas prices…but I don’t buy it. Drilling is big business in Alaska, but because the oil has to travel down to refineries in Canada and the southern U.S., it takes a rather circuitous route before coming back to Alaska as gasoline. As a result, prices are higher in Alaska and Hawaii than in other parts of the country. Some analysts think that a majority of the country could see $5 a gallon gas this summer. That’s going to hurt.
Make no mistake America; gas prices are only going to continue to rise, no matter what the GOP says. The only thing to do is develop alternatives and give gasoline a real competitor; then, maybe, Big Oil will make real efforts to cut prices.
Just don’t hold your breath.
Source: The Detroit Free Press