• By JJ Velasquez - jvelasquez@vicad.com
• Originally published October 17, 2009 at 9:57 p.m., updated October 18, 2009 at 2:15 p.m.

As oil prices ballooned above $78 a barrel Friday, local experts said higher gas prices could be passed along to the consumer sooner rather than later.

Henry Luddeke, a wholesale manager for Western Petroleum in Cuero, said Victoria residents can expect gas prices to go up to $2.50 per gallon in the next few days.

Prices are spiking despite a low demand for gasoline, Luddeke said. One reason, the decreasing value of national currency.

"The dollar is at a 14-month low," AAA spokesman Dan Ronan said. "So it costs more dollars to buy that barrel of oil because the dollar is slumped."

Even though the dollar is failing, many economic forecasters expect the nation will soon be out of the woods and recover from the current recession.

The anticipation of a healed economy and higher demand provides another reason traders are pumping up prices, Ronan said.

He said that when more people are employed again, the demand for petroleum products is expected to increase, whether it is to fuel personal automobiles or commercial jets.

"The rally in oil prices is being caused by the anticipation among the traders that the economy is turning around and that the economy is showing signs of recovery," Ronan said.

The price of regular unleaded was $2.39 at most stations Friday.

Victoria resident Virginia Cordova said that the expected rise in gas prices was "outrageous."

She said this, and an expected colder winter, which may raise utility rates for locals, may force people into working two or three jobs.

Katrina Terry works for GNR Executive, an international gas recruitment agency. She is a self-proclaimed cheerleader for rising gas prices.

"I celebrate every time gas goes up," she said. "It's better for oil and gas production. So that creates more jobs, and they hire more people. It's a good thing."

Local electrician Paul Solis said he is OK with the price hike as long as it doesn't reach the levels of 2008.

"It's better than $3," Solis said. "Too bad they don't make cars that run on water or trash."

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