Iowa gas prices increased by 10% in May. The average increase was about $2.16 per gallon for 10 % ethanol combined states a state survey undertaken on May 15. Natural gas prices augmented in the most recent monthly survey by 51 cents per MMbtu (decatherm) to $3.08 per MMbtu on May 14 this year.
The reason for the increase of natural gas prices according to the Iowa Department of Natural Resources, is supposed to be the increase in crude oil prices. This may be due to signals of a potential economic revival which is in the offing.
Tommi Makila, energy policy analyst for the Iowa Department of Natural Resources stated that “The expectation of future growth in consumption has been driving prices up, but relatively low overall demand and large inventories should moderate the price increases we see this summer”.