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OIL AND GAS
Pain at the pump to continue, AAA says
by Daniel J. Graeber
Washington (UPI) Mar 3, 2015


disclaimer: image is for illustration purposes only

While U.S. gasoline prices remain relatively low, the recent trend in increases is the longest in more than two years, motor club AAA reports.

The national average retail price for a gallon of regular unleaded for Tuesday is $2.44, up two cents from the previous day. Prices have increased for 36 straight days, the longest streak since February 2013.

AAA spokesman Avery Ash said gasoline prices are still historically low, but the price trend is a growing source of frustration for motorists. Prices are up because of refinery issues and AAA expects increases to continue.

"Gas prices likely will rise higher in March as refineries conduct seasonal maintenance," he said in a Monday briefing. "The good news is that most U.S. drivers should still pay less than $3 per gallon to fill up their cars this year."

The average national average price for this date last year was $3.46. One month ago, the national average price was $2.06.

Gasoline prices typically increase in late winter and early spring as refineries conduct seasonal maintenance. Refiners beginning in early February start making a shift to produce a summer blend of gasoline, which is more expensive to produce than a winter blend. AAA said gasoline prices increased 43 cents from February to late April 2014.

Gas prices in California are rising much faster than the rest of the nation, up about $1.00 in the last month due in part to a fire at an Exxon Mobil refinery in February.

No state in the nation reports an average price below the $2 mark. At the low-water mark, about half of the states reported sub-$2 per gallon averages.

The U.S. Energy Information Administration predicts a full-year national average price of $2.33 per gallon, more than $1 less than last year. The average U.S. household should spend about $750 less on gasoline than last year.


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