Fuel prices still headed upward in Iowa

Fuel prices are expected to continue rising after a 5.6 percent jump in the price of 10 percent ethanol blend from mid-December to mid-January in Iowa.

The Iowa Office of Energy Independence reported that continued increases in global demand, weakening of the dollar, and improving equities markets will continue to push oil prices higher. The higher prices have already translated into fuel surcharges on airline and taxi cab fares, the agency said, and has increased costs for shipping and home parcel delivery.

The cost of unleaded 10 percent ethanol blend rose from $2.84 per gallon on Dec. 15 to $3 per gallon on Jan. 17, the state report said, an increase of 16 cents, or 5.6 percent.

Crude oil prices rose by a smaller percentage. A barrel of West Texas Cushing Sweet Crude Oil traded at $91.38 on Jan. 18, up 2.8 percent from the December 2010 price of $89.22 and 15.6 percent higher than the January 2010 price of $79.02.

Heating fuel prices have also been on an upward trend. The January 14 trading price of natural gas was $4.41 per decatherm, up 1.1 percent from $4.36 per decatherm in the state's December survey.

Natural gas prices remain $1.26 per decatherm lower than a year ago, however, and the amount of working natural gas in storage is well above the five-year average.

Iowa heating oil prices rose over the one-month period by an average of 15 cents per gallon to $3.01 per gallon on Jan. 17. Liquid propane prices increased by an average of 9 cents per gallon to reach $1.79 per gallon.