"Refiners will soon start the switch to so-called summer blends, which don't vaporize as easily, to meet air pollution requirements. It's more expensive and time-consuming to create fuel that's resistant to evaporation, explains Aixa Diaz, an AAA spokesperson. What's next: The seasonal cost rise typically starts at the end of February or early March as "spring break season kicks off and refineries start production of summer-blend gasoline," Diaz said via email."
"Patrick De Haan of the market tracking firm GasBuddy says the Iran situation is currently adding a few cents per gallon. He notes that inventories of winter blends are "well above average" right now, which is "temporarily diluting the impact" of the increase. But De Haan, the firm's head of petroleum analysis, said the change to summer blends; more people driving after winter; and typical pre-summer maintenance work reducing activity at refineries are together a powerful force."
Oil prices are rising as traders weigh the risk that a U.S. strike on Iran could disrupt supply, a change that will eventually raise retail gasoline. Refiners will switch to summer-blend gasoline that resists evaporation, a process that is more expensive and time-consuming. The seasonal cost increase typically begins in late February or early March as refineries start summer-blend production and spring travel rises. Specific refinery issues, including maintenance at an HF Sinclair plant in the Pacific Northwest and problems in the Great Plains, are tightening wholesale supplies. High winter-blend inventories are temporarily softening the impact, but retail seasonality often adds $0.25–$0.65 per gallon.
Read at Axios
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