Gas prices going up despite low demand

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By JOLEEN FERRIS

Story Created: Feb 11, 2009 at 9:04 PM EST

Story Updated: Feb 12, 2009 at 12:02 AM EST

UTICA, N.Y. (WKTV) - Gas prices in Central New York have spiked in recent months, going from $1.79 a gallon to $2.13 in some spots. According to AAA's Ed Welsh, it has less to do with the laws of supply and demand, than greed.

"There's an over-supply of oil, there's an over-supply of gasoline, and demand is down, so that would mean prices go down but that's not what's happening," says Welsh.

Welsh attributes the logic-defying rise in gas prices to good, old-fashioned greed.

"The refineries have been shutting capacity down, raising the price.....so this is a case where refineries are trying to make some money, that's what it is."

Welsh warns drivers, who are already cutting their mileage and driving up to nine percent less than this time last year, not to expect a break heading into the summer driving season.
   
"If the economic conditions we're in now stay stable or get maybe a little bit worse, I think we'll see maybe upwards of $2.50 a gallon this summer."
    
Welsh is quick to point out that it could be worse.
    
"A lot better than last summer at $4.40 a gallon."

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