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Gas Prices to Jump for Summer

Exxon Reports Record Profit

By Joe Benton
ConsumerAffairs.com

February 1, 2008
Oil industry experts are predicting gasoline prices will rise another 50 cents a gallon by the peak summer driving season as the Exxon Mobil Corp. reported the highest yearly profits ever by a U.S. company.

Gas prices have climbed by almost a dollar a gallon in each of the last two years. The 2008 price spike is likely to arrive as refiners switch from winter to summer blended fuels, an increase that could start later in February on the West Coast.

The national average price could reach $3.50 a gallon, a 17 percent increase over the current price for a gallon of regular self serve.

Prices are up very little for the week, averaging $2.99. That is 4 cents higher than last month and 83 cents higher that last year at the same time.

With gasoline prices hovering at the $3 mark, Exxon, the world's largest oil company that is not run by a state reported annual earnings of $40.61 billion, a new record for U.S. profits beating the old Exxon mark for 2006.

Just as the Exxon profit report was released, the Organization of Petroleum Exporting Countries agreed there would be no increase in oil production. The cartel members are concerned that a weakening global economy will result in softer demand and less income.

The highest recorded price for a gallon of regular gasoline this week is found in Mendocino, California at $3.85. The cheapest gallon is once again found in Saint Louis, Missouri for $2.60.

California: Gas prices have continued dropping this week throughout California for the third week in a row with the average price in the state now $3.13. Prices in some areas the price is below $3 a gallon, according to the Automobile Club of Southern California.

San Francisco motorists are paying $3.36 a gallon. Drivers across the Bay in Oakland are paying $3.19. Up the American river in the state capital of Sacramento the price of a gallon of regular is $3.10.

The average price of self-serve regular gasoline in the Los Angeles-Long Beach area is $3.08, which is 9.1 cents lower than last week, 21 cents less than last month, and 61 cents above last year.

On the Central Coast, the average price is $3.24, down 7.8 cents from last week, 18 cents under last month, and 57 cents more than last year.

In the Inland Empire, the average price is $3.07, 8.3 cents below last week, down 20 cents from last month, and 60 cents higher than last year.

Although prices have been dropping rapidly, they're still significantly higher than the $2.47 a gallon average price in Los Angeles at this time last year, according to Auto Club spokesperson Jeffrey Spring.

Texas: Retail gasoline prices have fallen across the state for the third week in a row.

The AAA Texas gas price survey reports regular self-serve is averaging $2.87 per gallon in the 11 cities surveyed. That's 3 cents less than last week but 84 cents more than at the same point of 2007

Auto club spokeswoman Rose Rougeau said a slowing economy and recession fears appear to be curtailing demand for gasoline.

El Paso has the lowest average price of $2.82 per gallon, down a penny from last week. The Austin-San Marcos area again has the highest average gas price in Texas at $2.92 per gallon, down 2 cents.

Florida: Gas prices in the state of Florida continue to decline. The average price of a gallon of gasoline in the state is now at $3.05.

In the middle of Florida the average price in Gainesville is 7 cents higher than the state average at $3.12.

Managing Director of Public Relations for AAA Auto Club South, Greg Laskoski says the cause is a decline in crude oil prices.

Laskoski said that price patterns of gasoline are fairly consistent, which could mean a rise in gas prices soon in Florida.

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