By Joe Benton
ConsumerAffairs.com
April 10, 2006
Gasoline prices continue to climb, rising almost 7 percent in April alone. Nevertheless, oil industry analyst Trilby Lundberg says consumers may be in for a break because of increasing supplies.
The national average for self-serve regular unleaded gasoline now sits at $2.665 a gallon, up almost 17 cents in just two weeks, according to the nationwide Lundberg survey of about 7,000 gas stations.
In the last six weeks, gasoline prices have leaped more than 42 cents per gallon.
So why the hope that the increases may soon ease?
Lundberg says that an expected rise in refining capacity could put a stop to surging prices at the pump.
She says that the number one reason for increasing prices is the cost to refiners of converting to new, cleaner fuel specifications. "Those regulations added about 14 cents per gallon to what distributors and retailers pay," according to Lundberg.
Increasing crude oil prices added 7 cents or 8 cents to the gasoline price rise as well, according to the Lundberg report.
"If we assume some slight slippage in crude oil prices because there is enough supply, and if most, if not all, of the new costs to make gasoline according to this years different specifications pass through, then the end of the retail price run up will come very soon," she said.
Among the stations surveyed across the country, the lowest average price for regular unleaded was in Salt Lake City, at $2.28 a gallon. The most expensive was in Honolulu, where drivers paid $2.88 a gallon.
Here is a look at more gasoline prices around the nation:
New Hampshire: Gas prices are climbing ever closer to last year's historic highs. The average price for a gallon of regular unleaded is retailing in Manchester for $2.55, a full 35 cents higher than a month ago, according to AAA's Daily Fuel Gauge Report.
New Hampshire prices were still lower than the national average.
Gas prices peaked last September after Hurricane Katrina, when the average gallon of regular unleaded in New Hampshire went for $3.21. The panic was somewhat short-lived, however, as prices dropped to $2.18 over the next two months. Some Queen City stations even dipped below the $2 mark.
Colorado: Gas prices in Fort Collins are below the national average but that isn't much comfort to drivers.
Gas prices in Fort Collins range from $2.55 a gallon for regular unleaded at area Diamond Shamrock locations to $2.65 at a Shell station. A large number of stations in town have regular unleaded selling for $2.60 a gallon.
Georgia: Gasoline prices in the Gainesville area are changing almost daily as they continue to push higher reaching levels not seen since last fall.
The price of regular unleaded is near $2.60 a gallon in most places in town.
Michigan: The average price of self-serve regular gasoline in Michigan is up 7.5 cents per gallon over the past week and close to 20 cents over the past two weeks, according to AAA Michigan.
The statewide average of $2.72 per gallon is 36.8 cents higher than a year ago at this time.
The Grand Rapids area has the most expensive gasoline of Michigan's metropolitan areas at $2.765 per gallon.
In the Detroit area, the average increased 8.5 cents per gallon to $2.684.
Massachusetts: For the second week in a row, gasoline prices in Massachusetts are up.
According to AAA Southern New England, the average for a gallon of self-serve unleaded regular is now $2.61.
That's up 10 cents in the last week and 20 cents in the last two weeks. A year ago at this time it was $2.16.
AAA says prices are 39 cents higher now than at the start of 2006.
Prices in the AAA survey ranged from $2.49 to $2.75.
