FAYETTEVILLE, Ark. (KNWA/KFTA) – Gas prices nationally have hit a seven-year high, and gas prices locally are going up right along with it.
Chief fuel analyst for OPIS, Denton Cinquegrana, says that our gas is still significantly cheaper compared to other countries around the globe.
However, because Europe has been pushing so hard for renewable energy when times are bad for renewables, it can considerably affect supply and demand.
The price spike we see right now is a perfect example of that.
“Sometimes the wind doesn’t blow, sometimes the sun doesn’t shine so you run into these issues where you’re going to have to need a backup capacity,” says Cinquegrana. “In this green society, you tend to forget about that and lean too much on renewables.”
When it comes to prices leveling out to what they usually are, he says that’s tough to forecast.
But good news he can share is the imminent switch from summer-grade gasoline to winter-grade gasoline should drop prices by about 20 cents a gallon.