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Gasoline: The Price Keeps Climbing

By Joe Benton
ConsumerAffairs.com

March 2, 2007

• Gas Prices Slide 8 Percent from Record • Gas Prices Creep Down • Oil Price Trend May Be Good News For Consumers • Gasoline Drops Below $3.90 a Gallon • Gas Prices Pull Back Slowly • Oil Prices Fall As Storm Misses Rigs • Latest Gas Price Round-Up • 'Run Your Car On Water' Scheme Could Leave Consumers All Wet • Unregulated Energy Trading Blamed for Much of Gas Price Gusher • Airlines Join Effort To Limit Oil Speculators • Questions Raised about MyGallons.com • 'Hypermiling' Is Dangerous, Says AAA • Struggling Drivers Blame Washington for High Gas Prices • What’s Really Fueling Those Sky-High Oil Prices • Credit Card Fees at the Pump are a 'Hidden Tax' on Consumers • Survey: 3 Out of 4 Angry About High Gas Prices • $2 A Gallon Gas Possible, Analysts Tell Congress • Speculators Buy More Oil Contracts Than Oil Companies • Saudis to Pump More Oil • Limiting Oil Speculators Gains Ground • Congress To Probe Oil Price Spike • Oil Market 'Saturated,' Iran Claims • Feds See No Relief from High Gas Prices • High Gas Prices Could Mean Lower Insurance Rates • High Gas Prices Good For Kia, Honda • Gas Prices Rip Past $4 and Keep Climbing • Administration, OPEC See Different Causes Of Oil Surge • Feds Probing Possible Oil Market Manipulation • Beware of Fuel Sippers Sipping High-Test • Retailers Respond to High Gas Prices with Discounts, Promotions • Rushing Into a Smaller Car Too Soon May Not Save Money • Hybrid Sales and Prices Climb in Lockstep with Gas Prices • Truckers Bemoan Burden of High Diesel Costs • Gas Prices Biting into Worker Productivity • Consumers Warned About Gas-Saving Schemes • Is Tony Soprano Controlling Gas Prices? • Oil & Gas: The New Bubble • Critics: New Federal Gas Mileage Standard Falls Short • Consumers Feeling Pain of Skyrocketing Gas Prices • New Gas Price Record Forecasts Expensive Summer Driving Season --- • More ...

Speculation that President Bush will order an attack on Iran's uranium enrichment program is credited for sending U.S. gasoline prices closer to $3 a gallon as international oil prices near $62 a barrel.

The increase is steadily driving gasoline prices higher with regular and mid-grade gasoline jumping 6 cents for the week. The average price for regular self-serve gasoline is now $2.43 and mid-grade sells for $2.58 a gallon.

Premium gasoline is selling for an average of $2.68 a gallon, up 7 cents for the week, according to AAA, of Heathrow, Florida.

Diesel fuel costs $2.66 for a gallon on average throughout the country and that is a 3 cent increase. One month ago regular gasoline cost an average of $2.15 and one year ago a gallon sold for $2.26.

Oil prices have continued up as harsh worlds fly between Washington and Tehran. The Bush Administration suspects that Iran plans to enrich uranium to make a nuclear bomb while Iran insists the nuclear fuel is for power plants.

United Nations officials are looking at new sanctions against Iran and oil traders are concerned that sanctions or a military attack will disrupt Middle East oil production.

Gasoline prices rise as the experts worry and the most expensive gallon of regular self-serve gasoline is now found in Kirkwood, California where consumers are paying $3.85 for unleaded fuel.

The cheapest gallon of regular self-serve is found in Jacksonville, Arkansas for a $1.88 a gallon.

Here is a look as some gasoline prices from around the country in the ConsumerAffairs.com Gas Price Round Up.

California: California has toppled Hawaii as the state with the highest average gasoline price, according to figures from the American Automobile Club of Southern California.

The statewide average for a gallon of self-serve regular grade is now $2.88 while in Hawaii regular gasoline sells for an average of $2.87, according to AAA.

"We're into the fourth straight week of price increases, and so far, there doesn't seem to be an end in sight," says Carol Thorp, a spokeswoman for the Automobile Club of Southern California.

Average prices have already zoomed above the $3 mark in San Francisco, where regular cost and average of $3.08, the state’s highest and 60 cents higher than the average a year ago.

The average price of a gallon of regular self-serve in San Diego County rose 12.1 cents over the past week to $2.84, 34 cents more than last month and 31 cents more than a year ago, according to the latest Auto Club survey of the region's gas stations.

In Orange County, the average price per gallon rose 12.2 cents over the past week to $2.76.

"Some of California's supplies are being diverted to assist with shortages in other southwest states, and since supplies are already tight here, this has caused an increase of nearly two cents a day in most areas over the past week," said Thorp.

Texas: Texas motorists face surging retail gasoline prices for the fourth week in a row, according to AAA Texas.

The weekly survey found regular-grade gas prices rose an average of 13 cents to $2.28 per gallon.

The most expensive gas is found in Amarillo, where regular grade rose an average of 14 cents to $2.40 per gallon. The cheapest gas is in Corpus Christi, where it averaged $2.20 per gallon, a 12-cent increase

"Retail gasoline averages in Texas are about 25 cents per gallon higher this week than what motorists were paying only a month ago," said Rose Rougeau, spokeswoman for AAA Texas. "Much of the increase at this time of year is a seasonal phenomena related to the switchover from winter to warm weather gasoline. Plus, the higher cost of crude at $61 a barrel has played a role in the higher prices."

Florida: Gasoline prices are up in the Sunshine State as Florida braces for the first big wave of college students headed south for spring break. After flirting with the $2 level earlier this year, area gas prices have reversed course and taken an upward track in recent weeks.

Randy Bly, a spokesman for AAA Auto Club South, said it appeared there was a window for price declines a few weeks ago, but he emphasized that had "slammed shut very quickly."

He said for the immediate future it appeared more price increases might be in store for motorists.

"It was really unexpected that they would go up this quickly," Bly said.

As college and high school students come into the state, winter residents also are on the road en route to their primary residences, Bly said.

"March in Florida is one of the highest traffic count months in the entire year," Bly said.

Oregon: As retailers across the nation prepare for the March switch from winter to summer grade fuels, pump prices continue to climb. Oregon's statewide average price rose by about six cents per gallon to $2.52. Of the state's four measured metro areas, Medford-Ashland experienced the largest increase, almost 14 cents per gallon.

"A combination of factors are contributing to the rising prices," said AAA Oregon Public Affairs Director Elliott Eki. "In addition to transitioning to the cleaner burning, more expensive summer fuel blends, global influences pushed the price of crude oil near $62 per barrel; gasoline demand has been high—especially for a February; and adding upward pressure to West Coast pricing."

"A north Texas refinery, which serves New Mexico and Arizona, remains off-line due to a major fire. Until the refinery resumes production, those two states will turn to California for replacement supplies, which will impact Pacific Northwest supplies and pricing," Eki said.

At $2.52, Oregon's average gasoline price is 4th highest in the nation. Utah has the lowest statewide average price at $2.18.

North Carolina: Filling up is more expensive with the average price of gasoline in the state at about $2.34 a gallon, up 2 cents from Tuesday and almost 25 cents more expensive than a month ago when the average state price was $2.11.

AAA of the Carolinas reports that price spikes should not be all that surprising because this is the time of the year when the cost of gasoline starts increasing. Part of the reason is that oil refineries need to shut down to do their spring cleaning.

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