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Gas Prices Spike, Consumer Demand Up

By Joe Benton
ConsumerAffairs.com

March 9, 2007

• OPEC Unable to Stop Gas Prices' Slide • Give Thanks for Falling Gas Prices • Gas Prices Fall Below $2 a Gallon • Oil and Gas Supplies Rise • Gas Prices Accelerate Their Decline • Gasoline Prices Down 19 Cents in a Week • Charlotte Gas Stations Make Refunds to Consumers • Oil Snaps Back As Markets Sense Post-Election Bounce • Gas Prices Settle Still Lower for Weekend • Gasoline Prices Keep Falling • Gas Below $3 Nationwide • Average Gas Price Down to Nearly $3 a Gallon • Gas Prices Drop, Along With Oil • Gas Prices Head Lower as Economy Slows • Gas Price Declines for 9 Days • Gas Prices Continue Downward Trend • Oil Prices Surge By Record $25 a Barrel • Gas Prices Drop for 5 Days • Price-Gouging Probes Spread to 6 States • Investigations of $5 Gas in North Carolina, Florida, and Virginia • Shortages, Price Hikes Follow Ike in Southeast • States Investigate Gasoline Price Gouging Claims • Pumping More U.S. Oil Won't Lower Prices, Consumer Group Says • Oil Prices Fall, Gas Prices Surge • Gas Prices Slide 8 Percent from Record --- • More ...

Gasoline prices are up sharply across the country with the national average price for a gallon or regular self-serve hitting $2.52. Prices in California continue to lead the nationwide increase with the statewide average pegged at $2.99 and a gallon of regular selling for more than $3 in many parts of the Golden State.

Demand is up with prices. Consumers burned 3.3 percent more gasoline in the four weeks that ended March 2 than in the same period last year, according to the U.S. Department of Energy.

The national average price for regular gasoline is up almost 10 cents a gallon in just one week and 33 cents in one month. One month ago a gallon of regular cost $2.19. A year ago, drivers paid $2.35 for a gallon of unleaded gasoline.

Mid-grade gasoline is averaging $2.67 a gallon, up 9 cents for the week. A gallon of premium gasoline is averaging $2.77 and that is also a 9 cent increase compared with a week ago.

Crude oil prices are lingering between $61 and $62 because of speculation that demand for gasoline will increase as summer approaches.

The most expensive gallon of gasoline is found in San Bruno, California for $3.49. Evanston, Wyoming now has the cheapest gallon of regular for sale at $2.05.

Gasoline is no longer available anywhere in the country for less that $2 a gallon, ending the brief relief consumers enjoyed following the record prices set in 2006.

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

California: Gas prices have been on the increase since the beginning of March and California has now overtaken Hawaii as the state with the most expensive fuel, according to the Automobile Club of Southern California's Weekend Gas Watch.

The average price of self-serve regular gasoline in the Los Angeles-Long Beach area is $2.93, which is 11.7 cents higher than last week, 38 cents higher than last month, and 38 cents higher than last year.

In San Diego, the price is $2.95, which is 10.9 cents above last week's price, 37 cents above last month, and 38 cents above last year.

On the Central Coast, the average price is $3.05, up 8.9 cents from last week, 33 cents above last month, and 37 cents higher than last year.

In the Inland Empire, the average price is $2.94, 10.8 cents above last week, 37 cents higher than last month, and 37 cents higher than last year.

A gallon of gasoline in San Francisco is selling for an average price of $3.15.

"With five straight weeks of price increases, the California average price of $2.96 a gallon is now more expensive than the Hawaii average price of $2.87," said Auto Club spokesperson Carol Thorp.

"Speculators concerned about California's tight fuel market have pushed wholesale prices up quickly," she said.

Texas: The state's retail gasoline prices surged for a fifth straight week, according to AAA's gas price survey.

The survey showed the average price of regular-grade gasoline rose 11 cents to $2.38 per gallon. Dallas gas was priced at $2.38, up 10.5 cents, while Fort Worth gasoline was selling for $2.38, up 10 cents.

"The statewide average price for a gallon of self-serve regular gasoline has risen sharply during the last five weeks," according to AAA spokeswoman Rose Rougeau.

"This represents an especially rapid rise in gas prices. The recent increase can be attributed to strong crude oil prices, unusually high driver demand and the annual switch over to less-polluting summer gasoline," she said.

The most expensive regular-grade gas in Texas was found in Amarillo, where it rose 6 cents to $2.46 per gallon. The cheapest gas was in Corpus Christi, where it was selling for $2.30 per gallon.

Wisconsin: After briefly enjoying gas prices near $2 per gallon last month, Wisconsin motorists today are paying an average of $2.47 for a gallon of regular unleaded. According to AAA Wisconsin, the higher gas prices are due to a return of higher oil prices now above $60 per barrel and the seasonal switch to cleaner-burning warm weather fuels.

The statewide average price of $2.47 for a gallon of self-serve regular unleaded is up 35 cents from one month ago. However, that price is 75 cents less than the highest recorded statewide average price of $3.18 per gallon set on August 8, 2006.

The lowest price is found in Janesville at $2.42 per gallon and the highest is in the Milwaukee area at $2.50 per gallon.

"This is a time of year when oil prices can be especially erratic as refineries briefly shut down to convert to the production of warm-weather fuels," said AAA Wisconsin Regional President Tom Frymark.

"In addition, speculative investing and geopolitical tensions are helping create an environment for higher fuel costs," he said.

Colorado: Drivers have seen a big jump in gas prices during the past 2 months.

According to AAA Colorado, the average for a gallon of gas in Denver is currently $2.41. The average is a penny more in Boulder. Grand Junction stations are averaging $2.50 a gallon, drivers in Fort Collins are filling up for about $2.48 a gallon and Vail gas stations have an average of $2.74.

Across Colorado prices at the pump have jumped about 34 cents a gallon in the past month. That increase is a little bit earlier than has been seen in previous years.

Pennsylvania: Gasoline prices have jumped nearly 40 cents a gallon in the last month, returning to levels not seen since late last summer and they could go higher.

Prices for regular unleaded are expected to rise through June, peaking around $2.67 per gallon, according to a federal report released this week.

The average price of a gallon of regular unleaded gas today in the Lancaster area was $2.54, up from $2.16 a month ago, according to the AAA Daily Fuel Gauge Report.

Filling up with 20 gallons of regular-grade gasoline in Pennsylvania today would cost $50.60, while last month it would have taken $43.

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