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In reply to the discussion: Gasoline Prices Rise At Fastest Rate In Almost Two Years: AAA [View all]happyslug
(14,779 posts)Now, as I write it is in the 20s in Johnstown PA, but as you go further south it gets warmer quickly, and that is the problem.
During the Winter, refineries concentrate on Diesel/Kerosene/Home heating oil (All three are about the same, there are technical differences but the big difference is the tax rate, home hearing oil is NOT tax, Diesel is).
Now, a by-product to Diesel/Kerosene/Home heating oil production is Gasoline. Thus Gasoline prices generally drop for while you get gasoline every time you refine oil, you can vary how much by how you distill the oil. In winter the emphasis is on Diesel/Kerosene/Home heating oil, in summer Gasoline.
When it comes to Home Hearing oil, People tend to buy their fuel in the fall, and if it runs low again in the winter. Given the late onset of winter and that January has been one of the warmest January in history (yes I know the Northeast and the Mid West is COLD but that is the exception to the general rule).
http://www.wunderground.com/blog/JeffMasters/comment.html?entrynum=2341
Given the above, I would not be surprised if home heating oil is at an all time high, and thus the decision to convert early to a more gasoline rich mix.