Gasoline prices apparently have one more summer price spike left in them — thanks to Tropical Storm Isaac.
Wholesale prices nationally hit a four-month high Monday after oil companies shuttered 8 percent of the country’s refinery capacity, and a fire broke out at a Venezuelan refinery that exports to the U.S.
In the Midwest, wholesale prices were up about 10 cents a gallon, an increase that could quickly reach retail pumps. And with holiday travel coming, the volatility could keep prices higher past Labor Day.
Tom Kloza, oil analyst for Oil Price Information Service, predicts that gasoline will begin to fall after Labor Day — if another big storm doesn’t affect supplies. He expects retail prices to fall 20 to 40 cents a gallon in the next several weeks, and he thinks the national average price could be well below $3.50 a gallon by early November.