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Five Gas Price Records in Five Days

By Joe Benton
ConsumerAffairs.com

May 17, 2007

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Five straight days of record gasoline prices have regular self-serve now selling for an average of $3.11, according to AAA.

The auto club is forecasting prices are likely to approach a nationwide average price of $3.25 a gallon during the next two months.

Record numbers of Americans are planning to hit the road during the Memorial Day holiday adding even more demand to gasoline supplies.

Before this week's series of record breaking gas prices, the highest price ever recorded in the AAA survey was $3.06 set September 4 and 5, 2005 following Hurricane Katrina.

This year problems in gasoline supplies and refinery output sent the average gas price above the $3 a gallon mark on May 4 and prices have climbed steadily since.

The old Katrina record fell Sunday and it's been up from there each day since.

Prices are now up 2.5 percent in last week and have 8.7 percent over the last month.

California has the highest average price with a gallon of self-serve unleaded costing $3.47 and San Mateo has the most expensive gallon of regular on sale at $4.09.

The cheapest gallon of regular gasoline on sale in the country is found in Greenbrier, Arkansas for $2.69.

Regular gasoline sold for $3.10 yesterday, $2.87 last month and $2.92 last year.

Mid-grade gasoline now averages $3.31 and premiums sells for $3.43.

AAA reports that 34 states and the District of Columbia now have average prices at or above $3 a gallon.

Refinery Problems

While crude oil prices have fallen over the last few weeks and oil supplies are high in the United States, problems at several refineries have crimped gasoline output ahead of the summer driving season.

The refinery problems include fires, power outages, and longer-than-usual maintenance periods.

Record prices have placed Big Oil on the defensive with the American Petroleum Institute, an oil industry group, pointing out that nearly 30 state or federal investigation over the past 30 years have failed to turn up any evidence of price fixing.

API economist John Felmy said that whenever the industry tries to add refining capacity, it faces opposition from surrounding communities.

API insists the amount of gasoline being produced is increasing. "I think the refining industry is doing all it can," Felmy said.

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