End of Omaha price war sends gas costs up - Omaha.com
Published Friday, May 10, 2013 at 12:00 am / Updated at 6:39 am
End of Omaha price war sends gas costs up

Ouch. That hurt.

Gasoline prices shot up in Omaha this week 22 cents per gallon in one day at some stations.

Rarely do gas prices rise so fast, said Rose White, a AAA spokeswoman who is the dean of gas prices in Nebraska.

The reason: Omaha prices are bouncing back up after an end to a price war.

“You've had a very competitive, spirited battle going on in Omaha, and that can only last so long before prices escalate,” said Mike Thornbrugh, spokesman for QuikTrip.

“Gas prices in Omaha have been artificially low for close to a month,” said Ruth Comer, spokeswoman for Hy-Vee. “Prices seem to be coming back up to reflect actual costs. What looks like a spike in gas prices is actually a market correction.”

Table: Unleaded fuel prices (per gallon) in Nebraska

OmahaLincolnNorth PlatteScottsbluffFremontGrand IslandColumbus

Citywide, gas prices have averaged a 21-cent increase at the pump since Sunday, White said, with the largest single-day jump occurring Tuesday.

Comer said the larger market forces will continue to affect price.

John Felmey, chief economist for the American Petroleum Institute, said some Omahans, trying to make sense of the city's price increase, have wondered if the Israeli airstrike in Syria caused prices to spike. It hasn't.

The broad, underlying factor is the rising price of crude oil, Felmey said. Crude oil prices bottomed out April 16 and have been rising since, he said.

Gasoline prices tend to follow crude prices by a couple of weeks, and they bottomed out April 28, he said.

Logically, the price at the pump will continue to rise as the increasing price in crude works its way through the system, but that's not a given, Felmey said. Among the myriad of complex market forces at play: Consumer demand is down.

Tom Kloza, chief oil analyst for Oil Price Information Services, said at the start of May, consumer demand averaged over the past month was the lowest it had been in nearly 15 years.

Also, U.S. crude oil production is at its highest levels since the early 1990s.

Trading strategies, the value of the dollar and other factors also play a role.

Contact the writer: Nancy Gaarder

nancy.gaarder@owh.com    |   402-444-1102    |  

Nancy writes about weather, including a blog, Nancy's Almanac. She enjoys explaining the science behind weather and making weather stories relevant in daily life.

Read more related stories
8% of alcohol sellers checked in Omaha area last week sold booze to minors
OPS bus, SUV collide; no students onboard at the time
Waitress who served alcohol to teen before fatal crash gets jail time, probation
Lori Jenkins, charged as accessory in 4 murders, waives speedy trial
Iowa State servers hacked, nearly 30,000 SSNs at risk
New public employee pay data: Douglas, Lancaster, Sarpy Counties, plus utilities
2nd District House race: After 8 terms, Lee Terry knows how D.C. works — and doesn't
Bellevue man is killed at Minnesota dance hall after South Sudanese basketball tourney
Spring corn planting still sputters in Nebraska, Iowa, other key states
Nebraska banking and finance director to retire
19-year-old killed in one-vehicle crash at 72nd & Shirley
Gov. Heineman vetoes bill to ease restrictions on nurse practitioners
U.S. Senate race: State Auditor Mike Foley defends Shane Osborn against ad campaign
Public defender to represent Nikko Jenkins in sentencing
Mid-America Center on track for lower operating loss
Bluffs City Council approves dozens of new numbered street lights
National Law Enforcement Memorial Week set for May
Ted Cruz backs Pete Ricketts' campaign for governor
Omahan charged with 5th-offense DUI after street race causes rollover
2 blocks of Grover Street closed
Safety board report blames pilot error in 2013 crash that killed UNO student, passenger
Omaha man accused in shooting ordered held on $75,000 bail
2 men charged with conspiracy to distribute meth held on $1 million bail each
La Vista plans meeting on sales tax proposal, 84th Street redevelopment
6-mile stretch of Highway 75 is the road not taken
< >
Breaking Brad: Into the claw machine! Florida kid follows Lincoln kid's lead
In Fort Lauderdale, Fla., a child climbed inside a claw machine. Hey, Florida kid: Nobody likes a copycat.
Breaking Brad: Even Chuck Hassebrook's throwing mud!
The Nebraska campaigns have turned so ugly, Democrat Chuck Hassebrook lobbed unfounded accusations at an imaginary opponent.
Breaking Brad: Kraft wiener recall is business opportunity for TD Ameritrade Park
Instead of returning the wieners, TD Ameritrade Park is calling them "cheese dogs" and charging double.
Breaking Brad: Photos with the Easter Bunny are so 2010
In a sign of the times, most kids ran out of patience waiting for a photo with the Easter Bunny at the mall, just snapped a selfie and went home.
Kelly: 70 years after a deadly D-Day rehearsal, Omahan, WWII vet will return to Europe
A World War II veteran from Omaha will return this week to Europe to commemorate a tragedy in the run-up to D-Day.
Deadline Deal thumbnail
Steam-A-Way Carpet Cleaning
$50 for 3 rooms and a Hallway up to 600 square feet
Buy Now
< >
Omaha World-Herald Contests
Enter for a chance to win great prizes.
OWH Store: Buy photos, books and articles
Buy photos, books and articles
Travel Snaps Photo
Going on Vacation? Take the Omaha World-Herald with you and you could the next Travel Snaps winner.
Click here to donate to Goodfellows
The 2011 Goodfellows fund drive provided holiday meals to nearly 5,000 families and their children, and raised more than $500,000 to help families in crisis year round.
Want to get World-Herald stories sent directly to your home or work computer? Sign up for Omaha.com's News Alerts and you will receive e-mails with the day's top stories.
Can't find what you need? Click here for site map »