The average retail price for regular gasoline in the U.S. has topped $1/gal for the first time in more than 4 months, said U.S. Energy Information Administration.
As of Mar. 22, the cash self-serve price of regular gasoline was 101.7¢/ gal, up 4¢ from the previous week. The price has risen 11¢ since reaching a low of 90.7¢ cents on Feb. 22.
The average price was the highest since last Oct. 19, when prices were in the midst of an 8-month decline.
EIA said rising crude oil prices and refinery problems are responsible for the price increase, which is occurring earlier than the typical demand-driven spring gasoline price rise.
The current average price is 1.7¢/gal higher than the price a year ago, the first year-to-year increase since October 1997.
Market drivers
EIA said, "Crude oil prices worldwide have risen strongly over the past month, after reaching 12-year lows in early December 1998, then vacillating at historically depressed levels until mid-February 1999."Prices began to climb in late February, in anticipation of action by major producing countries ahead of the meeting of the Organization of Petroleum Exporting Countries (see related story, p. 18)."
EIA said that, even without crude price changes, gasoline prices typically rise in the spring, as refiners and marketers prepare for the summer driving season.
"Peak summer demand generally exceeds U.S. refinery production, requiring additional supplies to be made up from imports and inventories. This year is expected to be no exception."
EIA said that, in addition to the usual seasonal gasoline price pattern, prices have been affected in the past month by problems at a number of refineries, particularly on the West Coast.
"A fatal accident resulted in the shutdown of a San Francisco-area refinery for up to 3 months or more, while other refineries throughout the nation have had unanticipated shutdowns of key units.
"These problems have had the greatest impact in California, where retail prices have risen 13¢/gal in the past 5 weeks, while a combination of influences have driven prices in the Midwest up by 16.2¢."
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