US retail gasoline hits new high - DOE

07 May 2008 22:54  [Source: ICIS news]

HOUSTON (ICIS news)--US retail prices for regular gasoline rose for the sixth week to reach a new high of $3.613/gal amid increased demand and the seasonal switch to more costly summer grades, the Department of Energy (DOE) said on Wednesday.

 

The department’s Energy Information Administration (EIA) said the average retail price rose by one cent this week to reach the new high.

 

“Historically, spring is also the time for rising gasoline prices,” EIA noted.

 

“Over the last ten years, the monthly average retail price for regular-grade gasoline has increased by an average 7 cents/gal from April to May,” the administration said.

 

In its short-term energy outlook issued earlier this week, the administration said the average gasoline wholesale price for May is likely to increase by 10 cents/gal from last month.

 

“One reason for the rising gasoline prices is the increase in demand as drivers roll down their windows and venture farther into the great outdoors,” EIA said.  With the onset of warmer weather in North America, US drivers typically take more automobile trips.

 

“Another important but less well-known reason is that 1 May marks the date for most of the country when more expensive-to-produce summer-grade gasoline is required,” the administration added.

 

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By: Brian Balboa
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