Consumers outraged over gas prices

POSTED: 6:02 pm EST March 4, 2005
UPDATED: 6:43 pm EST March 4, 2005

BOSTON — The price of crude oil on the world market is now a cruel reality at your local gas station.

Janet Wu Reports On Gas Prices

NewsCenter 5’s Janet Wu reported Friday that in some cases, prices have jumped a nickel or more just since the morning, and that has drivers lining up to get the cheapest gas they can.

“I think it’s outrageous. I don’t understand what’s going on. I thought we had enough gas reverses to get through this winter,” said Johnnie Hamilton-Mason, of Norwood, Mass.

One station paid 12 cents more per gallon for Friday’s delivery, but it raised its prices by half that, counting on volume to meet profit expectations.

“Unfortunately, it is going to go up,” ROJO company spokesman Patrick Mosesso said.

The price you pay for Friday’s gallon of gas isn’t what the wholesaler paid.

“The prices at the gas pump are based on the prices in the futures market. It takes into account interest rates. It takes into account the likely price of oil in the future,” Bentley College professor Joby John said.

Experts predict that prices will rise because of the weakness of the dollar, OPEC’s refusal to produce more crude oil, and a strengthening economy, which consumes more oil.

On Friday, the price for a barrel of oil closed at $53.78 — which was just slightly higher than Thursday, but even the experts can’t agree on what happens next.

“Some of them think oil prices could go as high as $80 per barrel. The other half says it will settle down to about $45, but who knows,” John said.
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