johnnymk
05-15-2007, 08:29 PM
http://www.consumeraffairs.com/news04/2007/05/gas_prices147.html
Gasoline prices hit record levels for the third consecutive day striking $3.09, according to the AAA Fuel Gauge Report.
Prices are now above $3 in 31 states and the District of Columbia generating fears that $4 a gallon gasoline could be in the near future.
The government's top energy forecaster told Congress that there will be no relief soon from the record high prices. The U.S. Energy Information Administration continues to blame strong consumer demand and dwindling stockpiles because of refinery breakdowns and slow imports for the skyrocketing prices.
The government warns that retail prices will climb higher as the summer vacation season continues.
EIA head Guy Caruso told Congress that there is still some wholesale price run-up that has not been passed along to consumers. Caruso declined to speculate how much higher gasoline prices will go.
"With refinery production expected to improve during the rest of May and import volumes increasing over the last few weeks, gasoline markets may ease somewhat, causing gasoline prices to recede from their current high levels," Caruso told members of the Senate Energy and Commerce committee.
Nevertheless, Caruso warned that the EIA expects gasoline markets to remain "fairly tight" this summer.
About 800,000 barrels per day in U.S. crude oil refining capacity is currently offline, which translates into about 400,000 barrels a day of lost gasoline production, according to the EIA. "It is an unusually high amount," EIA analyst Joanne Shores said.
AAA spokesman Geoff Sundstrom told the committee that his organization finds it "troubling" that the U.S is not able to supply enough gasoline to meet domestic demand.
Americans should be able to expect that those who refine oil into gasoline do a better job of anticipating demand growth, plan to meet that growth, and then make the necessary investments in plants, equipment and labor to provide the fuel at a cost that has some semblance of stability," Sundstrom said.
Senator Jeff Bingaman, the Democrat who chairs the energy panel, acknowledged that the U.S. economy remains “vulnerable to oil and gasoline supply disruptions and associated price increases."
The ranking Republican on the committee, Senator Pete Domenici, said there was no "silver bullet" that would slow the rise in gasoline prices this summer.
Prices High Everywhere
Prices are now above $3 in 31 states and experts predict more increases to come as consumers hit the road for vacations and other summer travel.
Mid-grade gasoline is selling for a national average of $3.26 and premium sells for $3.37.
The cheapest regular self-serve gasoline in the country is found in Boiling Springs, South Carolina for $2.65 and the most expensive gallon is on sale in Needles, California for $3.99.
One month ago regular sold for $2.79 and one year ago it sold for $2.88.
Gasoline prices hit record levels for the third consecutive day striking $3.09, according to the AAA Fuel Gauge Report.
Prices are now above $3 in 31 states and the District of Columbia generating fears that $4 a gallon gasoline could be in the near future.
The government's top energy forecaster told Congress that there will be no relief soon from the record high prices. The U.S. Energy Information Administration continues to blame strong consumer demand and dwindling stockpiles because of refinery breakdowns and slow imports for the skyrocketing prices.
The government warns that retail prices will climb higher as the summer vacation season continues.
EIA head Guy Caruso told Congress that there is still some wholesale price run-up that has not been passed along to consumers. Caruso declined to speculate how much higher gasoline prices will go.
"With refinery production expected to improve during the rest of May and import volumes increasing over the last few weeks, gasoline markets may ease somewhat, causing gasoline prices to recede from their current high levels," Caruso told members of the Senate Energy and Commerce committee.
Nevertheless, Caruso warned that the EIA expects gasoline markets to remain "fairly tight" this summer.
About 800,000 barrels per day in U.S. crude oil refining capacity is currently offline, which translates into about 400,000 barrels a day of lost gasoline production, according to the EIA. "It is an unusually high amount," EIA analyst Joanne Shores said.
AAA spokesman Geoff Sundstrom told the committee that his organization finds it "troubling" that the U.S is not able to supply enough gasoline to meet domestic demand.
Americans should be able to expect that those who refine oil into gasoline do a better job of anticipating demand growth, plan to meet that growth, and then make the necessary investments in plants, equipment and labor to provide the fuel at a cost that has some semblance of stability," Sundstrom said.
Senator Jeff Bingaman, the Democrat who chairs the energy panel, acknowledged that the U.S. economy remains “vulnerable to oil and gasoline supply disruptions and associated price increases."
The ranking Republican on the committee, Senator Pete Domenici, said there was no "silver bullet" that would slow the rise in gasoline prices this summer.
Prices High Everywhere
Prices are now above $3 in 31 states and experts predict more increases to come as consumers hit the road for vacations and other summer travel.
Mid-grade gasoline is selling for a national average of $3.26 and premium sells for $3.37.
The cheapest regular self-serve gasoline in the country is found in Boiling Springs, South Carolina for $2.65 and the most expensive gallon is on sale in Needles, California for $3.99.
One month ago regular sold for $2.79 and one year ago it sold for $2.88.