News : Fuel prices to increase : Sidney Herald, Sidney, Montana

Fuel prices to increase

Published on Friday, March 12, 2010 3:34 PM MST

As springtime teases Montana by appearing one day and gone the next, Montanans are noticing a not so welcome sign that spring is near; an increase in fuel prices.

On Wednesday, the average price of regular unleaded fuel in Montana is $2.76 per gallon; 6 cents higher than a week ago, 8 cents higher than a month ago; and 82 cents than a year ago. Montana is following very closely to the national average, which is also at $2.76.

Fuel prices traditionally take an upswing in the spring due to refineries switching from heating oils over to summer blended fuels and oil investors counting on the potential for increased vehicle travel as the weather improves. But is the current influx an indication of something else?

Currently the economy is still shedding jobs, but it is doing so at a much slower rate than in previous months. The labor market is a primary indicator of overall economic health and this job improvement has a ripple effect throughout the economy, including on oil prices as increased economic activity boosts consumption of oil. As the recovery gains steam and people return to work and resume their normal activities, like travel, demand for gasoline improves as well.

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