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Dayton
Business Journal
Gas prices accelerate
further
By Brittany Hart, DBJ Staff Reporter
Friday, March 25, 2011
Gas prices have climbed in recent weeks as oil surged on unrest in
Libya and other Arab countries.
Gas prices jumped 15 cents this week in some areas of the Dayton
region, according to AAA Fuel Gauge reports.
Some local gas stations, including Kettering, Beavercreek and Fairborn
locations, are as high as $3.59 per regular gallon, compared to $3.44
last week. Other stations posted smaller spikes to $3.49 on average.
U.S. crude oil fell more than $1 on Friday in choppy trading as
concerns rise for Japan’s nuclear problems, and in Europe amid worries
of supply disruptions in the Middle East and North Africa, according to
Reuters.
Last month, Dayton motorists were paying $2.96 at the pump. Fuel costs
were $2.72 a year ago.
The highest average cost of gas on record in Dayton was $4.10 per
gallon of regular fuel recorded on June 30, 2008, according to AAA Fuel
Gauge reports.
Increasing fuel costs have affected multiple Dayton-area industries.
The Dayton region has long been a hub for trucking companies because of
its central Midwest location and the intersection of Interstates 75 and
70.
Some of the biggest firms operate in the area, including US Xpress, the
third-largest private trucking company in the nation and operator of a
terminal in Springfield. Con-Way Inc.’s (NYSE: CNW) freight unit has
two locations in the Dayton region, Old Dominion Freight Line Inc.
(Nasdaq: ODFL) and Knight Transportation Inc. (NYSE: KNX) both also
have operations in Dayton. YRC Worldwide Inc. (Nadaq: YRCW) subsidiary
Holland Inc. operates a terminal on Valley Street in Dayton, and is
currently hiring more workers in the Dayton region.
The recent oil spike also has hurt airlines, with many carriers that
fly out of Dayton International Airport raising prices for airfares as
much as 30 percent in recent weeks, including Delta Air Lines (NYSE:
DAL); US Airways Group (NYSE: LCC); AMR Corp.’s (NYSE: AMR) American
Airlines unit; AirTran, a unit of AirTran Holdings (NYSE: AAI); and
United Continental Holdings Inc. (NYSE: UAL), the parent company of
United and Continental.
The overall energy situation also has caused many power companies to
seek out alternative fuels, and just recently DPL Inc. (NYSE: DPL)
announced it was seeking alternative biofuels to power its generating
plants. DPL is the primary utility in the Dayton region, followed by
Duke Energy Corp. (NYSE: DUK) and American Electric Power Company
(NYSE: AEP).
For investors, the surge in oil and gas prices has meant strong returns
in recent weeks for energy sector investments, including oil company
stocks such as BP plc., Chevron Corp. (NYSE: CVX); ConocoPhillips
(NYSE: COP) and Exxon Mobil Corp. (NYSE: XOM).
Other oil firms impacted by the market conditions include Hess Corp.
(NYSE: HES), Marathon Oil Corp. (NYSE: MRO), Occidental Petroleum Corp.
(NYSE: OXY), Royal Dutch Shell and Total SA (NYE: TOT).
Read it with links at the Dayton Business Journal
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