Families heading home from their holiday destinations are seeing a dramatic increase in the price of gas as they fill up at the pump. The increase may only be the beginning as unrest overseas could send prices even higher.
Prices here in the Stateline area have jumped by more than 17 cents over the past couple of weeks. Some filling stations are raising their prices by more than a dime since Christmas, and it's a trend experts say that will likely continue.
With the looming war in Iraq and oil production in Venezuela halted due to a month long workers strike this unrest is causing sudden spikes on prices in the oil market. Oil retailers are rushing to pass record prices down to consumers. But this may only be the beginning, if the U.S. goes to war with Iraq.
If the Venezuela Government is unable to solve its labor dispute with oil workers, companies such as Citgo who receive about 50 percent of their oil from this oil rich country say, “They will have to continue to search the oil market for alternatives to keep up with the demand.”
Citgo has already asked the White House to tap into their strategic oil reserves as part of their contingency plan, something the white house says they oppose. But experts say until a solution can be found to American interests overseas, customers will see the prices at the pump continue to rise.