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Gas Prices Breaking Records Every Day

15- to 20-Cent Rise Expected By End of May

By Joe Benton
ConsumerAffairs.com

May 4, 2007

• Why Are Oil Prices Falling? • Labor Day Gas Prices Up a Penny • Gas Prices Fall for 37 Days • 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 ...

The average price for a gallon of regular unleaded gasoline in the U.S. is now above $3.01 with prices in California setting new records almost every day.

The most expensive gallon of gasoline on sale in the country has blown through the $4 dollar mark selling for $4.05 in Needles, California. The cheapest gallon is no bargain, selling for $2.67 in Casper Wyoming.

Regular gasoline is selling for 30 cents more a gallon than one month ago and ten cents more than one year ago, a record breaking year.

Regular self-serve averages $3.46 in California and that is the highest average in the U.S. California is one of 20 states and the District of Columbia where the average price is now above $3.

Mid-grade gasoline sells for an average national price of $3.19 and premium goes for $3.31.

Industry analysts are sharply critical of U.S. oil companies for failing to refine adequate stockpiles of gasoline as the country approaches the peak summer driving season.

AAA Mid-Atlantic Government and Public Affairs Director Lon Anderson told a gathering of automobile enthusiasts earlier in the week that big oil is simply “ripping off” consumers. “Where is the hurricane,where is the new international tension,” Anderson asked? “You ask the oil companies that while they are raking in record profits.”

The oil industry claims to be struggling to retool refineries to meet new environmental standards and insists extensive maintenance is simply taking longer and draining gasoline inventories ahead of peak summer demand.

"The problem this year is our continuing and increasing inability to refine enough gasoline to meet growing demand," said another AAA executive, Geoff Sundstrom. "I think it is very possible that we will set a new record high price this month."

Gasoline stocks have dropped by 15 percent in three months and refineries are now running at around 88 percent of capacity and that is well below the 92 percent analysts say is normal this time of year to build up summer gasoline stocks.

AAA's Anderson said he thinks gasoline prices will rise another 15 to 20 cents before peaking towards the end of May.

Round-Up

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

California: Gas prices broke records throughout most of Southern California this week, zooming up suddenly on news of more refinery supply problems, 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 $3.42, which is 9.4 cents higher than last week, 16 cents higher than last month, and 11 cents higher than last year.

In San Diego, the price is $3.44, which is 9.3 cents above last week's price, 15 cents above last month, and 11 cents above last year.

On the Central Coast, the average price is $3.53, up 8.1 cents from last week, 17 cents above last month, and 14 cents higher than last year. In the Inland Empire, the average price is $3.42, 7.7 cents above last week, 13 cents higher than last month, and 7 cents higher than last year.

"This is the fourth year in a row that gas prices have set new record highs in May," said Auto Club spokesperson Carol Thorp. "About the only comfort that motorists can take from history is that prices generally have dropped every summer after reaching their record prices in May."

According to AAA of Southern California, the average price of a gallon of regular self-serve gasoline has climbed to record highs in both Los Angeles and Orange counties. Throughout California, a majority of cities hit new records, according to Thorp.

Prices have climbed throughout the state for 13 consecutive weeks.

The only city in California that saw a decrease in gas prices was Chico, in Northern California.

Texas: The retail gasoline price spike resumed in earnest this week in Texas after a marginal increase last week, according to the weekly AAA Texas gasoline price survey.

Retail prices of regular-grade gasoline rose an average of 9 cents to $2.87 per gallon in the 11 Texas cities surveyed.

"Motorists saw gas prices skyrocket this week, with the city of Amarillo showing a 15 cents increase in only one week," said AAA Texas spokeswoman Rose Rougeau. "Strong consumer demand, reduced domestic output due to refinery problems and lower imports continue to push prices higher."

Of the 11 cities in the survey, Amarillo had the highest average price of regular grade at $3 per gallon. The cheapest gas was still in Corpus Christi, where regular grade prices rose 10 cents to an average of $2.79 per gallon.

West Virginia: Gasoline prices at many Kanawha Valley stations have blown past the all-time local record with a leap of 20 cents a gallon.

In South Charleston, the price at several high-volume stations off Interstate 64 jumped from $2.99 to $3.19 on Thursday. The price at several stations around the Capitol moved up to $3.05. The price at stations in Kanawha City ranged from $3.05 to $3.15.

The highest average in West Virginia was $3.05 for a gallon of regular, set September 5, 2005, according to AAA.

According to AAA, the average price for a gallon of regular gas in West Virginia is $3.01, up 28 cents from a month ago and is the highest price since last June.

Today the average price is $3.04 in Ohio, $2.92 in Pennsylvania, and $2.88 in Virginia, according to the AAA. It is $2.96 in Maryland and Kentucky.

Florida: Florida Agriculture and Consumer Services Commissioner Charles H. Bronson is urging Floridians to report instances of price-gouging in the wake of the growing drought and wildfire risk that are impacting the entire state.

"We're asking consumers to come forward and let us know if any retailers have exploited our citizens or are profiteering from the emergency situation," Bronson said. "This activity is not only reprehensible, it's illegal."

Under Florida law, it is unlawful to charge exorbitant or excessive prices for essential items, including gasoline.

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