The average price for gasoline in the U.S. has risen about 10 cents in the past three weeks, according to the Lundberg Survey, The Associated Press reported Monday. The average price on Friday for unleaded regular was $3.07, mid-grade was $3.19 and premium, $3.30, the survey indicated.Price driver: oil
Independent energy trader Jim Dietz said oil's persistently high price has created an unusual market condition: a lack of a pronounced dip in gasoline prices during the winter months.
"Typically, gasoline demand drops during the winter months, when travel and leisure driving decreases, and that usually causes the price to drop substantially. But it hasn't this winter so far. The high oil price has kept gasoline prices from falling much, with prices about 30% higher than they were a year ago," Dietz said.
Pain at the pump
"That doesn't bode well for the summer months, when driving increases gasoline demand," Dietz said. "If oil prices remain at these levels, we'll see $4 per gallon gasoline in many areas of the country this summer." Oil rose $1.03 to $93.72 per barrel Monday morning trading.
Further, in some high-cost regions of the country, such as metropolitan New York, gasoline is already testing its latest stratosphere range. Prices in the Metro New York area are in the $3.20-3.55 range.
Retiree Mac Murphy of Larchmont, N.Y. now walks daily to the village's coffee shop and newsstand, instead of driving.
"The price of gasoline is forcing a lot of behavior changes, but this is one I can make without much sacrifice," Murphy said. "But if price goes above $4, I'd consider a much more fuel efficient vehicle for my next car, as well as my wife's next car."
Closing Bell: Can't go up every day (BAC, HE, HPW, COMS, BRCD, WMT, AMD)
Wal-Mart grows profit and cash flow in Q3, but comps still ailing
Chasing Value: Ten stocks for 2010 -- Part 2
