By Mark Huffman
ConsumerAffairs.com
January 8, 2010 
The average price of gasoline rose more than seven cents a gallon in the last seven days, hitting a high not seen since before the economic meltdown of 2008.
The daily Fuel Gauge Survey from AAA shows the national average price of self-serve regular hit $2.725 a gallon Friday, up from $2.651 a week ago. The 2009 high, reached in October, was $2.695.
Today's national average price of diesel fuel is $2.886 a gallon, up from $2.815 a week ago.
Andrew Delmege, AAA's manager of regulatory affairs, notes today's gas prices are slightly more than a dollar higher than they were last year, but says the price of gas has to be viewed in its proper context.
In January of 2009, the economy was a few short months past the start of the financial collapse, VMT and consumer demand for gasoline had fallen dramatically, and the market price for oil hung in the low $30 range, Delmege said. Today, there are a few hopeful signs the economy is starting to once again gain traction, demand for gasoline has also shown signs of increasing and the market price for oil is north of $80 per barrel.
Alaska once again has the most expensive gas in the nation, with an average price of $3.357. Wyoming has the cheapest gas in the nation, with a statewide average of $2.48 a gallon.
The average price of gas in California has once again crept above the $3 a gallon mark, joining Alaska and Hawaii as the only states with gas prices north of $3. California's most expensive gasoline market remains San Francisco, where the metro average is $3.12 a gallon. The cheapest California gas is in Yuba City, with an average price of $2.951 a gallon.
Despite the spurt in prices to begin 2010, Delmege expects fuel prices in stabilize in the weeks ahead.
Most indicators suggest the first half of 2010 will be marked by a gradual, moderately paced economic recovery, he said. A slower, more measured economic recovery would have a moderating affect on retail gasoline and market oil prices, barring unforeseen events. It is also important to keep in mind there is still a very large supply of gasoline that must clear through before a tighter, more supply and demand driven market can emerge.
