Reuters reports that gas prices have climbed to nearly $3.20 for a national average. Experts believe gas prices have much higher to climb still with another 20 to 30 cent increase to come in April.
Gasoline prices are rising sharply as refiners, who have kept prices down in order to compete for sales, become more willing to pass on their higher costs of crude oil, according to an industry analyst on Sunday.
The national average for self-serve regular unleaded gas was nearly $3.20 a gallon on March 7, up about 9.44 cents per gallon in the past two weeks, according to the nationwide Lundberg survey of about 7,000 gas stations. The price has risen 64 cents per gallon in the past 12 months.
"The price increase was entirely due to the higher costs of crude oil," said survey editor Trilby Lundberg.
Although the latest price represents a nominal all-time high, when adjusted for inflation it is a smidgen below the record of $3.18 per gallon reached on May 18, 2007, Lundberg said.
Lundberg said things will likely get worse, with prices at the pump rising 20 to 30 cents per gallon in the next month as refiners begin passing on to customers more of their higher costs for crude oil.
With the cost of oil now hitting $107 a barrel it is possible that the national average gas price could eclipse the $4 a gallon mark during the summer driving season.
The AAA's Fuel Guage Report has the nationwide average price at $3.222 - just one half cent short of the all-time record high of 3.227 that was set on May 24, 2007.
