Rising gas prices packing a punch at the pump

LUFKIN, TX (KTRE) - Gas is costing you roughly $0.45 more a gallon than it was this time last month leaving many drivers cringing as they pull up… to fill up.

Khaled Karim owns a Shell gas station, near Crown Colony in Lufkin and says gas station owners typically set their prices so they match all the other stations in town.

Karim says, "Fixing the prices is in our control but at the same time we match their prices if we go lower with the prices, the gas wars will start going on. We don't want to do that."

We researched gas prices in East Texas on Gas buddy and for right now it appears that local gas prices are falling right in the middle range on the high/low scale.

Since the first of the year the price that you've been paying at the pump has consistently been rising leaving many drivers wondering why. Well the answer isn't much different than it has been in the past according to the Energy Information Association (EIA) the price of crude oil has jumped about 10% in the past 2 months and Two-3rds the cost of 1 gallon of gas comes from the price of crude oil.

But people filling up at the pump aren't the only ones feeling the punch.
Karim said, "In the past 2 weeks or so gas prices have gone so up our margin is less than ½ a penny we can't even make the credit card fees also from this gas prices, just trying to survive."

And as far as gas stations jacking up the price of fuel to make a profit...

Karim says "A thousand gallon tank of unleaded is costing me, today is $3.69 I got it for $3.67. Yes. That's my cost on the invoice. That is the delivery with transportation, overhead & contract charges."

In a recent article, triple a foreshadows this early-in-the-year gas price increase to slow before the end of the spring.