Gas Price Run-Up Continues with Another Record
Gas Price Run-Up Continues with Another Record
By Joe Benton
ConsumerAffairs.Com
May 18, 2007
Another day, another penny and a half for Big Oil as gasoline prices hit a new record for the sixth consecutive day. The national average price for regular self-serve is now $3.129, up 1.5 cents overnight, according to the AAA automobile club.
While gas prices have climbed steadily throughout most of the country this week, in some parts of California prices have dropped slightly, perhaps suggesting the worst of the price run-ups might be easing.
Despite the slight declines in California however, energy traders and analysts are concerned that gasoline supplies are not catching up to demand with the summer driving season right around the corner and those worries are exacerbated by a string of planned or unexpected refinery shutdowns.
The Energy Information Administration reported Wednesday that gasoline stocks, while increasing to 195.2 million barrels last week, remained well below the average for this time of year.
A 10 percent decline in U.S. gasoline imports has also left supplies tight.
The average price of mid-grade unleaded gasoline is now $3.32 a gallon, and premium unleaded gasoline is selling for $3.44 a gallon.
Diesel fuel prices continued to remain stable at $2.91 a gallon.
Drivers in Needles, California are seeing the highest gasoline prices at $4.09 a gallon and drivers in Lindsay, Oklahoma are seeing the lowest price at $2.49 a gallon.
While Big Oil blames record gasoline prices on unexpected refinery shutdowns, Congress is questioning whether industry mergers and investment decisions have erased a supply cushion.
The House Judiciary Committee's antitrust task force opened hearings on oil industry concentration with the committee chairman noting that gasoline prices have soared well above $3 a gallon and asking, "How did we get into this mess?"
"Oil companies today are enjoying record profits, and while they could use those profits to invest in more production capacity, instead they use the money to buy back shares in the markets," complained Representaitve John Conyers Jr., D-Michigan, the panel's chairman.
Round-Up
Here is a look as some gasoline prices from around the country in the weekly ConsumerAffairs.Com Gas Price Round Up.
Texas: Retail gasoline prices have now climbed for a 15 weeks in a row in Texas, according to the weekly AAA Texas gasoline price survey.
The survey showed that regular-grade gasoline in the 11 Texas cities polled climbed an average of 8 cents to $2.95 per gallon. That's 1 cent per gallon from the record of $2.96 reached following Hurricane Rita in September 2005.
"Despite high gas prices and increasing vacation costs, it is estimated that travel for the Memorial Day holiday will be up by nearly two percent this year," said AAA Texas spokeswoman Rose Rougeau. "Consumers will travel smart this holiday, staying closer to home and in less expensive hotels and eating at less costly restaurants."
In recent weeks, the auto club had blamed strong consumer demand, reduced domestic output because of refinery problems and lower gas imports for the climbing prices.
The survey shows the state's most expensive retail gas prices are found in Amarillo, where regular-grade averaged $3.21 per gallon this week, up 13 cents from last week. The cheapest gas was found in San Antonio, where regular-grade rose 6 cents to an average of $2.86 per gallon.
California: More than a week after reaching new records in most areas, some California gas prices have dropped slightly, according to the Automobile Club of Southern California's Weekend Gas Watch.
The average price of self-serve regular gasoline in the Los Angeles-Long Beach area is $3.46, which is two cents cheaper than last week, 15 cents higher than last month, and six cents above last year.
In San Diego, the price is $3.47, which is 2.7 cents below last week's price, one cent above last month, and three cents higher than last year.
On the Central Coast, the average price is $3.59, down 1.7 cents from last week, 15 cents above last month, and 11 cents higher than last year.
In the Inland Empire, the average price is $3.46, 1.7 cents below last week, 12 cents higher than last month, and two cents higher than last year.
"The price decrease is probably barely noticeable to consumers when they're already paying so much for gas," said Auto Club spokesperson Carol Thorp. "At least the numbers are heading in the right direction -- down. But it's still too early to tell if this is true relief or just a price plateau."
The national average is still 39 cents a gallon less than the statewide California average of $3.48.
Florida: Florida motorists are paying an average $3.04 for regular self-serve, surpassing the statewide record of $3.03 from August 2006.
Tampa drivers saw an average $2.96, while Orlando was at $2.97, with both figures approaching previous records. Prices in Polk County averaged $3.04 with some drivers reporting prices of $3.09 in Winter Haven and $3.16 in Lakeland.
The Polk county average is up from $2.92 one month ago and $2.83 one year ago.
"This week is bearing out what we thought. The tremendous upward pressure on prices is still there. It's still a matter of building up inventory," said AAA spokesman Randy Bly. "We are expecting prices to drop off after the Memorial Day weekend. If refiners can build up inventory there's a chance prices could plateau and drop before then, but our window of opportunity is closing."
Bly said that most refiners have finished performing maintenance and completed their transition to summer blends of fuel by Memorial Day.
The AAA spokesman also said the record highs in Florida are surprising because the previous high of $3.06 on September 5, 2005, came in the wake of Hurricane Katrina.
"Here we are exceeding that with no similar scenario whatsoever, it's just the marketplace," Bly said.
North Carolina: Gas prices soared in the Asheville area, in some cases by 20 cents a gallon. Prices at some stations hit $3.13 a gallon, leaving drivers with major sticker shock.
Asheville has the highest average price in the state at $3.06 a gallon, according to AAA Carolinas in Charlotte, which tracks gas prices. The average price statewide went up from $2.99 to $3.02.
“Gas prices have gone up 50 percent over a few months time, and that’s hard to take,” said Jayne Cannon, a AAA Carolinas spokeswoman.
Copyright © 2003-2007 ConsumerAffairs.Com Inc. All Rights Reserved.
By Joe Benton
ConsumerAffairs.Com
May 18, 2007
Another day, another penny and a half for Big Oil as gasoline prices hit a new record for the sixth consecutive day. The national average price for regular self-serve is now $3.129, up 1.5 cents overnight, according to the AAA automobile club.
While gas prices have climbed steadily throughout most of the country this week, in some parts of California prices have dropped slightly, perhaps suggesting the worst of the price run-ups might be easing.
Despite the slight declines in California however, energy traders and analysts are concerned that gasoline supplies are not catching up to demand with the summer driving season right around the corner and those worries are exacerbated by a string of planned or unexpected refinery shutdowns.
The Energy Information Administration reported Wednesday that gasoline stocks, while increasing to 195.2 million barrels last week, remained well below the average for this time of year.
A 10 percent decline in U.S. gasoline imports has also left supplies tight.
The average price of mid-grade unleaded gasoline is now $3.32 a gallon, and premium unleaded gasoline is selling for $3.44 a gallon.
Diesel fuel prices continued to remain stable at $2.91 a gallon.
Drivers in Needles, California are seeing the highest gasoline prices at $4.09 a gallon and drivers in Lindsay, Oklahoma are seeing the lowest price at $2.49 a gallon.
While Big Oil blames record gasoline prices on unexpected refinery shutdowns, Congress is questioning whether industry mergers and investment decisions have erased a supply cushion.
The House Judiciary Committee's antitrust task force opened hearings on oil industry concentration with the committee chairman noting that gasoline prices have soared well above $3 a gallon and asking, "How did we get into this mess?"
"Oil companies today are enjoying record profits, and while they could use those profits to invest in more production capacity, instead they use the money to buy back shares in the markets," complained Representaitve John Conyers Jr., D-Michigan, the panel's chairman.
Round-Up
Here is a look as some gasoline prices from around the country in the weekly ConsumerAffairs.Com Gas Price Round Up.
Texas: Retail gasoline prices have now climbed for a 15 weeks in a row in Texas, according to the weekly AAA Texas gasoline price survey.
The survey showed that regular-grade gasoline in the 11 Texas cities polled climbed an average of 8 cents to $2.95 per gallon. That's 1 cent per gallon from the record of $2.96 reached following Hurricane Rita in September 2005.
"Despite high gas prices and increasing vacation costs, it is estimated that travel for the Memorial Day holiday will be up by nearly two percent this year," said AAA Texas spokeswoman Rose Rougeau. "Consumers will travel smart this holiday, staying closer to home and in less expensive hotels and eating at less costly restaurants."
In recent weeks, the auto club had blamed strong consumer demand, reduced domestic output because of refinery problems and lower gas imports for the climbing prices.
The survey shows the state's most expensive retail gas prices are found in Amarillo, where regular-grade averaged $3.21 per gallon this week, up 13 cents from last week. The cheapest gas was found in San Antonio, where regular-grade rose 6 cents to an average of $2.86 per gallon.
California: More than a week after reaching new records in most areas, some California gas prices have dropped slightly, according to the Automobile Club of Southern California's Weekend Gas Watch.
The average price of self-serve regular gasoline in the Los Angeles-Long Beach area is $3.46, which is two cents cheaper than last week, 15 cents higher than last month, and six cents above last year.
In San Diego, the price is $3.47, which is 2.7 cents below last week's price, one cent above last month, and three cents higher than last year.
On the Central Coast, the average price is $3.59, down 1.7 cents from last week, 15 cents above last month, and 11 cents higher than last year.
In the Inland Empire, the average price is $3.46, 1.7 cents below last week, 12 cents higher than last month, and two cents higher than last year.
"The price decrease is probably barely noticeable to consumers when they're already paying so much for gas," said Auto Club spokesperson Carol Thorp. "At least the numbers are heading in the right direction -- down. But it's still too early to tell if this is true relief or just a price plateau."
The national average is still 39 cents a gallon less than the statewide California average of $3.48.
Florida: Florida motorists are paying an average $3.04 for regular self-serve, surpassing the statewide record of $3.03 from August 2006.
Tampa drivers saw an average $2.96, while Orlando was at $2.97, with both figures approaching previous records. Prices in Polk County averaged $3.04 with some drivers reporting prices of $3.09 in Winter Haven and $3.16 in Lakeland.
The Polk county average is up from $2.92 one month ago and $2.83 one year ago.
"This week is bearing out what we thought. The tremendous upward pressure on prices is still there. It's still a matter of building up inventory," said AAA spokesman Randy Bly. "We are expecting prices to drop off after the Memorial Day weekend. If refiners can build up inventory there's a chance prices could plateau and drop before then, but our window of opportunity is closing."
Bly said that most refiners have finished performing maintenance and completed their transition to summer blends of fuel by Memorial Day.
The AAA spokesman also said the record highs in Florida are surprising because the previous high of $3.06 on September 5, 2005, came in the wake of Hurricane Katrina.
"Here we are exceeding that with no similar scenario whatsoever, it's just the marketplace," Bly said.
North Carolina: Gas prices soared in the Asheville area, in some cases by 20 cents a gallon. Prices at some stations hit $3.13 a gallon, leaving drivers with major sticker shock.
Asheville has the highest average price in the state at $3.06 a gallon, according to AAA Carolinas in Charlotte, which tracks gas prices. The average price statewide went up from $2.99 to $3.02.
“Gas prices have gone up 50 percent over a few months time, and that’s hard to take,” said Jayne Cannon, a AAA Carolinas spokeswoman.
Copyright © 2003-2007 ConsumerAffairs.Com Inc. All Rights Reserved.
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