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Gas Prices Top $3 in Five States

Motorists Seem to be Accepting the "New Normal"

By Joe Benton
ConsumerAffairs.com

April 20, 2007
California gasoline prices lead the nation with a gallon of regular self-serve averaging $3.35 throughout the state. Average gasoline prices are also above $3 a gallon in four other states -- Oregon, Washington, Nevada and Hawaii.

Gasoline prices are up more than 60 cents in the last two months and began the seasonal summer increase about a month earlier than usual.

Across the country, the average price for a gallon of regular self-serve is $2.86, 30 cents more than one month a go and 4 cents more than one year ago.

Unlike the last few years, the latest price spikes have sparked little public outrage. Some analysts say consumers may now be regarding as normal what was once seen as exorbitant. Gas prices in the $3 range may be the "new normal," they say.

Mid-grade gasoline is selling for an average price of $3.04 and premium costs $3.15. Diesel fuel sells for $2.94 a gallon

The Energy Information Agency predicts that the average gasoline price will peak at $2.87 in May. Last year the average price peaked at $2.98 in July.

This week the highest gasoline price in the country is found in Lee Vining, California where a gallon of regular unleaded is selling for $3.89.

The cheapest gallon of regular gasoline is on sale in Winston-Salem, North Carolina for $2.47.

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

California: Southern California's slight dip in gas prices just after Easter has turned out to be a temporary respite. Gas prices headed back up over the last week, coming within a dime of their all-time record highs in most areas, according to the Automobile Club of Southern California.

The average price of self-serve regular gasoline in the Los Angeles-Long Beach area is $3.32, which is six cents higher than last week, 19 cents higher than last month, and 32 cents higher than last year.

In San Diego, the price is $3.35, which is five cents above last week's price, 18 cents above last month, and 32 cents above last year.

On the Central Coast, the average price is $3.44, up 6.3 cents from last week, 20 cents above last month, and 36 cents higher than last year.

In the Inland Empire, the average price is $3.34, 4.9 cents above last week, 19 cents higher than last month, and 30 cents higher than last year.

"Last year at this time, gas price averages were just reaching $3 a gallon in Southern California, and this year we've been paying over $3 for more than five weeks," said Auto Club spokesperson Carol Thorp. "Local wholesale gas price spikes that happened last week seem to be related to this latest round of increases."

In Northern California, Tahoe City is leading the state in high prices as many California areas in the north are setting record high gas prices.

The California average has risen 69 cents in 2007, according to AAA but Truckee-Tahoe averages have increased by 79 cents between April 18 and January 18.

Texas: Retail gasoline prices rose this week for 11 weeks in a row in Texas and the weekly AAA Texas gas price survey shows regular-grade gasoline prices averaged $2.78 per gallon. That is a seven-cent increase in just the last week.

Auto club spokeswoman Rose Rougeau said volatility tied to consumer demand, world events and profit-taking in the markets make it impossible to predict future price trends.

El Paso has the most expensive gasoline prices among the 11 Texas markets surveyed, rising eight cents to an average of $2.85 per gallon. Corpus Christi remains the cheapest on the list with regular grade rising six cents to an average of $2.68 per gallon.

Illinois: Gasoline has again touched $3 a gallon in Chicago, and is closing in on that number elsewhere in Illinois.

Average prices for a gallon of regular gasoline in Chicago range from $2.83 to as high as $3.00, according to AAA Chicago, with many stations in the city selling gas for more than $3.

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