Gasoline prices top $3 gallon, hit 25-year high

NEW YORK (Reuters) – The average retail price of a gallon
of gasoline topped $3 in the United States last week, the
highest price in 25 years, according to the latest nationwide
Lundberg survey released on Sunday.

The national average for self-serve, regular unleaded gas
was $3.0150 per gallon on July 21, a rise of almost 2 cents per
gallon from two weeks ago when the average was $2.9952, the
survey of about 7,000 gas stations said.

Last week’s national average exceeds by one-third cent a
high set last year after Hurricane Katrina caused a gasoline
shortage, but was still short of an inflation-adjusted peak of
$3.16 set in March 1981, survey author Trilby Lundberg said.

Prices were unlikely to go higher, she said.

“This price increase does not portend more price increases,
unless there is a deepened threat to world oil supplies or a
force majeure event,” she said.

Although there are some refinery capacity problems, demand
is not growing and probably is shrinking with gas at more than
$3 a gallon, Lundberg said.

The highest price for gasoline was found in San Diego at an
average $3.28 a gallon, and the lowest regional average was in
Charleston, South Carolina, at $2.77 a gallon, she said.