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$4 Gas Spreads Throughout the Nation

Nationwide average could hit $4 by June 1

By Joe Benton
ConsumerAffairs.com

May 30, 2008
The average price of a gallon of regular gasoline is inching ever closer to the $4 mark throughout the country, climbing another penny overnight to $3.962, according to the AAA Fuel Gauge Report.

Retail gasoline prices have now established a record for 23 consecutive days.

One month ago regular gasoline sold for $3.617 and one year ago a gallon of diesel sold for $3.191.

"I do think we could get to $4," said Geoff Sundstrom, a spokesman for AAA. "We could get there right in time for June 1."

Regular gasoline sells for an average price above $4 in 12 states and the District of Columbia. The price of regular in Indiana fell below $4 to $3.998 after rising beyond the mark earlier in the week.

Diesel prices continue their rampage with the national average price for a gallon sitting at $4.792. Diesel prices have surpassed $5 in some parts of the country, including California, adding to the rise in food prices and other consumer goods.

Mid-grade gasoline now sells above $4 in 46 states, averaging $4.207 a gallon. Premium now sells for an average national price of $4.358 a gallon, above the $4 mark in all 50 states and the District of Columbia.

Consumers are reporting that rising gasoline prices are changing their commuting habits. More than four in 10 said gasoline prices affected their commutes, according to a recent study by Robert Half International.

That's up from 34 percent reporting changes one year ago.

Prices are compelling more carpooling and ride sharing with 33 percent of those questioned considering a more fuel efficient vehicle. Almost 30 percent plan to work more from home.

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

California: Regular self-serve gasoline averages $4.198 in California. Diesel sells for an average of $5.152 in the state.

Four-dollar regular unleaded prices have spread to every metropolitan area in the state. Prices have climbed 15 cents to 20 cents in most areas in just the past week, according to AAA.

"Prices jumped by 10 cents over the Memorial Day weekend in most local areas," said Jeffrey Spring, a spokesman for the Automobile Club of Southern California. "Without a plummet in our record crude oil prices, it's hard to know when motorists will get any relief at the pump."

Gasoline is selling throughout the state for almost 75 cents a gallon more than at this time last year, the AAA said.

The average price of self-serve regular gasoline in the Los Angeles-Long Beach area is $4.112 a gallon, which is 15.3 cents more than last week. In San Diego, the price is $4.165, which is 15.6 cents higher than last week's price.

The most expensive regular gasoline in California is found in Santa Barbara for $4.262, AAA reported. That's up more than 15 cents from last week in the seaside city.The cheapest average price for regular gasoline in the state is found in Orange County for $4.130, up about 13 cents from last week's low price.

Texas: There is no let-up in the skyrocketing gasoline prices throughout Texas, according to the AAA weekly survey.

AAA reported that regular self-serve averaged $3.844 per gallon, up 11 cents from last week.

The survey also reported that more than half of the auto club's members have cut back significantly on the miles they drive with 66 percent combining errands to reduce driving.

"There is no doubt that gas prices are having a big impact on many Texans," said Mark Bell, regional vice president and general manager for AAA Texas. "Drivers are changing how they drive and how often because of the relentless upward swing in gas prices."

The most expensive gasoline in Texas was found in Amarillo, where regular self-serve rose 11 cents to $3.859 per gallon. The cheapest gas was in Corpus Christi, where the average price rose 6 cents to $3.804 per gallon.

Florida: The sunshine state is struggling with many older gasoline pumps that do not have the technology to post a price beyond $3.99 a gallon.

Regular gasoline now averages $3.959 in Florida. Mid-grade sells for $4.289 and premiums sells for $4.368 a gallon.

The pricing issue on older pumps is a problem especially for mom-and-pop retailers struggling with diminished sales margins, according to a spokesman for the National Association of Convenience Stores.

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