LOUISVILLE, KY (WAVE) - With gas prices hovering around $4 a gallon many residents have been wondering why prices are as high as they are in our area.
University of Louisville Associate professor of Economics Jose Fernandez said we are experiencing an increase over last year at the pump.
According to Louisvillegasprices.com, the average price of gas in the Louisville area on Tuesday was right around $3.83 a gallon, but we found some places with higher prices than that. The Shell located at the intersection of South 1st and East Jefferson Streets was $4.09 a gallon. Right now, Louisville is actually higher than the national average of $3.63 a gallon.
A look back at prices in 2013 showed Louisville was right around $3.75. Nationally, the trend a year ago was $3.63. Twenty years ago a gallon of regular gas would cost you around $1.11. So, it's understandable why the prices today are hard to swallow.
The spike we have seen most recently, according to Fernandez, was right around Memorial Day weekend. He said in May, June and July certain counties in Kentucky such as Jefferson, Oldham and Bullitt, opt into the EPA's clean air act, which is the summer blend.
"What we do there is that we change the formula of the gasoline," said Fernandez. "About 10 percent becomes ethanol gas that leads to fewer emissions so, we have less pollution in the air." Which costs you more money.
Our prices here in Louisville are higher than Bowling Green, Elizabethtown and Paducah. Fernandez said we could see prices come down just a bit at the end of August when we stop using the summer blend. But all that, of course, is dependent on what happens overseas.
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