By Mark Huffman
ConsumerAffairs.com
October 30, 2009 The average price of gasoline continued rising this week, and today is $2.695 a gallon, up six cents a gallon in the last seven days, according to AAA.
The cost of fuel has accelerated in October, rising nearly 22 cents a gallon in the last four weeks. Gas prices are now less than a penny under their high for the year, reached during the second week of June.
The average price of diesel fuel is $2.832 a gallon, up almost six cents since last Friday.
The most expensive gas in the nation is found in Alaska, Hawaii and California the only three states where the average price exceeds $3 a gallon. In Alaska the statewide average is $3.40 a gallon; the price in Hawaii is $3.27 and in California it's $3.01.
In California, San Francisco has the most expensive average price, at $3.136 a gallon. The cheapest gas is found in Yolo, with an average price of $2.908 a gallon.
Nationwide, the lowest price for self-serve regular is found in Wyoming, at $2.501 a gallon. South Carolina is next at $2.531.
Gasoline prices have risen because of the recent rise in world oil prices, which have more than doubled this year. Oil prices have gone higher due to a decline in the value of the U.S. dollar and the expectation that recovering world economies will consume more oil next year.
Over the course of last week, market oil prices jumped past the $80 per barrel mark for the first time since September 2008, said Andrew Delmege, AAA's manager of regulatory affairs. The resulting increase in gasoline futures and retail gasoline prices has attracted widespread media attention, with some outlets going so far to suggest a surge in gasoline prices could slow the speed of economic recovery. However, given the severity of the recession from which the economy is seemingly now emerging, retail gasoline prices that are 10-20 cents higher than they had been for much of the summer while certainly an unwelcomed sight for motorists are a minor concern by comparison.
The latest report by the U.S. Energy Information Administration shows demand for gasoline remains subdued. In the last week stockpiles of gasoline actually increased by more than one million barrels.
