ASP’s Andrew Holland featured in Domestic Fuel’s article about gas prices
Andrew Holland, Senior Fellow for Energy and Climate with the American Security Project, was recently featured in a piece by Domestic Fuel regarding the expected rise in summer gas prices. In response to the question “Why do gas prices go up during the summer?,” Holland replies:
“The answer is: it’s complicated. While a large portion of the gas price is due to crude oil price affected by the predictions (as opposed to actual supply and demand), this time of year, the change in price has a lot to do with switchovers at the refineries from winter types of fuels to summer types that can cause some short-term shortages.
Plus, the increase in demands due to more summer driving for vacations and the seasonal uptick in economic activity drive prices higher.”
Holland also addresses the importance of alternative fuels, such as ethanol, alternatives to travel like carpooling, and new innovations to reduce consumer demand for oil, saying that:
“It’s using less oil, as a society and as individuals. People are buying new cars that are much more fuel-efficient than previous cars, and that’s driving down consumer demand. If everybody demands less oil, that means the oil going to be a bit cheaper.”
The full Domestic Fuel article, entitled “Overcoming the Summer Gas Price Rise Blues,” can be found here.
