By Joe Benton
ConsumerAffairs.com
March 31, 2006
Gasoline prices are up across the country as wholesale prices jumped almost 11 cents in two days at the New York Mercantile Exchange following news of low inventories. California has the highest average price at $2.75 per gallon, while the lowest average can be found in Utah at $2.31 per gallon.
The drawdown of 5.4 million barrels of gasoline last week was the biggest weekly inventory drop since August 2003.
Here is a look at what is happening around the country.
Texas: In the Rio Grande Valley drivers saw an increase of 10 to 14 cents a gallon overnight. Throughout Harlingen most service stations are selling a gallon of unleaded for $2.49.
The average price of regular self-serve dipped in some cities, including 3 cents to $2.39 per gallon in Corpus Christi. That was the cheapest average price in the state this week.
Dallas drivers continue to pay the most for gas at $2.53 a gallon for regular self-serve, up less than half a cent from last week. Fort Worth motorists are paying $2.51 at the pump.
"The spot market for wholesale gasoline experienced a sharp, but short, downturn just over a week ago, which got reflected in the price declines," said AAA Texas spokeswoman Rose Rougeau. "However, those spot prices have spiked again. That means consumers will once again see increases at the pump, at least for the next couple of weeks."
Arizona: Refineries shifting to cleaner blends of gasoline for summer and a pick up in driving this time of year have pushed Arizona gas prices higher.
The statewide average is up nearly 18 cents over the past month to $2.51 for a gallon of self-serve unleaded regular.
Over the past month, gasoline demand has picked up more than a full percentage point and industry observers expect the prices to keep moving higher, as oil prices trade above $66 a barrel and demand will continue to increase over the summer months, as many people take driving vacations or book airplane trips.
The highest average pump price in Arizona can be found in Flagstaff at $2.60. The East Valley is recording the lowest local average gas price at $2.45 per gallon.
Kentucky: Louisville-area gasoline prices hit $2.80 per gallon. Prices had been running in the $2.40 range as recently as last weekend.
Some gasoline a prices less than $2.60 was available at stations just east of Louisville International Airport.
Indiana: Gas prices are on a wild ride in Grant skyrocketing to $2.75 per gallon for regular unleaded.
Industry representatives have said that big one-day gas price increases reflect that local retailers have been selling at low prices and finally decided they couldn't afford to take the loss anymore.
Denver: The annual pre-summer rise in gasoline prices got an earlier-than-usual start with Denver-area prices rising more than a dime a gallon in some places.
Gas prices in Colorado averaged $2.49 per gallon of regular unleaded, according to the most recent survey from AAA Colorado. That data, which did not include Thursday's price increases, showed that prices have increased 23 cents since the beginning of the month.
The spike follows a run-up in wholesale prices that experts say could portend another summer of high gas costs. Gasoline supplies have been affected by refinery maintenance and the seasonal shift from winter grades of gasoline to summer grades.
Additionally, many oil companies are beginning to replace the additive MTBE - methyl tertiary-butyl ether - with ethanol, leading to concerns that ethanol production may not keep pace with demand.
Wisconsin: Gas prices jumped 8 cents Thursday to $2.65 a gallon for regular at many stations.
Average Madison prices for regular were $2.34 per gallon a month ago and $2.18 a year ago.
In the Midwest, suppliers are switching from winter to summer fuels, which could mean that less inventory is available.
Michigan: Regular is sitting around $2.75 a gallon, and premium is flirting with $3 a gallon.
Maybe people are just numb, or they have resigned themselves to the fact that gas prices went up so quickly the past few weeks.
One gas station in Flint known for lower prices saw its price per gallon go up 20 cents in just this past day.
Normally a sharp price increase occurs right before the weekend or before a major holiday. Drivers are controlling the price of gas the only way they can. Simply not buying as much as they used to.
Prices were 40 cents higher than they were this time last year.
New York: As the travel season approaches, drivers might be looking to the pumps with more than a little concern as the $3-mark looms near and gas prices are showing an upward trend.
