Retail gasoline prices match 2010 high
Motorists are well down the road to higher pump prices as warmer weather and the driving season approach.
Average retail gasoline prices, continuing a surge that started last month, have now matched their 2010 high on the way to prices that many analysts believe will top $3 per gallon this spring.
The nationwide average retail gasoline price rose 0.6 cents Monday to $2.753 per gallon, virtually identical to the high water mark of $2.7583 reached on Jan. 14, according to AAA, Wright Express and Oil Price Information Service.
Prices have risen 9.2 cents in the last month and are now 80.6 cents higher than levels of a year ago.
The Energy Information Administration, which is among those predicting $3 gallon gas this spring, will release figures on nationwide retail gasoline prices later Monday.
The jump in retail prices follows an increase in wholesale gasoline prices. April contracts on the New York Mercantile Exchange rose 1.82 cents to settle at $2.2892 per gallon.
An 18 percent rise in oil prices over the past month that pushed crude near a 2010 high of $83.95 per barrel is also boosting gas prices.
Part of the increase in gasoline prices is seasonal. Prices typically go up in the spring as refiners switch to more expensive blends of gasoline. Demand usually picks up as motorists emerge from hibernation and hit the road.
But things may be different this year. The U.S. remains well supplied with gasoline and oil, so there is no prospect of a supply shortage driving up prices. Also, the high unemployment rate and uncertainty about the economic recovery have kept demand for gasoline about where it was a year ago.
Benchmark crude for April delivery rose 37 cents to settle at $81.87 a barrel on the Nymex. Earlier in the session, it peaked at $82.41.
In other trading in April contracts, heating oil rose 0.81 cent to settle at $2.1055 a gallon. Natural gas fell 6.6 cents to settle at $4.527 per 1,000 cubic feet. During the trading day, natural gas touched a new 52-week low at $4.458 per 1,000 cubic feet.
In London, Brent crude gained 58 cents to settle at $80.47 on the ICE futures exchange.
Related information:
Gasoline (American) or petrol (Commonwealth) is a petroleum-derived liquid mixture, that is primarily used as a fuel in internal combustion engines. It is also used as a solvent, mainly known for its ability to dilute paints.
It consists mostly of aliphatic hydrocarbons obtained by the fractional distillation of petroleum, enhanced with iso-octane or the aromatic hydrocarbons toluene and benzene to increase its octane rating. Small quantities of various additives are common, for purposes such as tuning engine performance or reducing harmful exhaust emissions. Some mixtures also contain significant quantities of ethanol as a partial alternative fuel.
Most current or former Commonwealth countries use the term petrol, abbreviated from petroleum spirit. In North America, the word gasoline is the common term, where it is often shortened in colloquial usage to simply gas (although petrol is also accepted and used to a lesser extent in Canada). It is not a genuinely gaseous fuel (unlike, for example, liquefied petroleum gas, which is stored under pressure as a liquid, but returned to a gaseous state before combustion). The term petrogasoline is also used. The Jamaican spelling is gasolene.
In aviation, mogas, short for motor gasoline, is used to distinguish automobile fuel from aviation gasoline, or avgas. In British English, gasoline can refer to a different petroleum derivative historically used in lamps, but this usage is relatively uncommon.
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March 9th, 2010 - 14:26
Gasoline prices will continue to be driven by the lack of U.S. refining capacity. Refinery utilization stood at 81.9%.
Any decline in crude oil prices will have little impact on retail gasoline prices if the refining capacity remains at such low levels.