Monday, August 25, 2008

The Increse of Gas Price as Bad News for Motorists

There’s bad news for motorists who are hoping for one last jaunt of the summer: AAA Auto Club South said Sunday that they expect gasoline prices to increase before Labor Day weekend.

In its weekly fuel briefing, AAA cited higher crude oil prices, reduced domestic fuel inventories and a weaker dollar as factors that could push pump prices higher this week.

“Tensions with Russia, Georgia, Iran? and a weaker U.S. dollar gave pause to the five-week decline in crude oil prices,” Randy Bly, director of community relations for AAA Auto Club South, said in a written statement. “Traders are concerned that OPEC may decide to decrease crude oil production at their next meeting in September. The U.S. Department of Energy is reporting below average gasoline inventories and U.S. refineries have decreased output in response to lower demand, to date. With Labor Day Weekend approaching, we can expect an increase in fuel consumption but a slightly lower gasoline inventory. That’s why prices may go up.”

The average price for a gallon of regular unleaded gasoline in Florida on Sunday was $3.69, compared with $3.74 last week. Last year, Florida motorists were paying an average of $2.72 per gallon for gasoline.

Nationally, the average price for gasoline was also $3.69, compared with $3.75 last week and $2.76 a year ago.

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