For the first time since October 20, 2008, the national average price is now higher than it was the year before.  The U.S. average price for regular gasoline increased for the third consecutive week, shooting up ten cents to $2.67 per gallon, according to the Energy Information Administration.  Still, this is $1.44 below the all-time high in July of 2008. Prices increased in all the major regions of the country last week. The smallest increase occurred in the West Coast, where the average rose just under two cents to $2.89 per gallon. The price in California was essentially unchanged at $2.99 per gallon.
     The national average price of diesel fuel climbed to $2.80 per gallon, an increase of a dime. Despite the rise, the average remained $0.49 below the price a year ago. Prices increased in all regions of the country. On the West Coast, the average went up eight cents to $2.90 per gallon and the California price jumped nine cents to $2.97 per gallon. 

         Counteracting the upward price pressure is excess supply. According to the Energy Information Association, domestic gasoline production increased over the week before.  Along with continued lagging consumption, this added up to gasoline inventory supplies registering at 200,000 barrels more than the week prior.         

     The Commerce Department said Thursday that the economy grew at a 3.5 percent pace in the third quarter, the best showing in two years, fueled by government-supported spending on cars and homes. The report delivered the strongest signal yet that the economy entered a new, though fragile, phase of recovery.  It appears that the stronger economy and the weak dollar are pushing crude prices, and fuel prices, higher.

 

Chris Nobles

Commercial Fueling