The average retail price of a gallon of gasoline in the United States fell over the past two weeks due to a temporary surplus as refiners built up stocks in anticipation of the usual spring surge in demand, according to an industry analyst.
The national average for self-serve, regular unleaded gasoline was $2.24 per gallon on Feb. 24, a decline of 6.2 cents per gallon from two weeks earlier, according to the nationwide Lundberg survey of about 7,000 gas stations.
That is about 34 cents a gallon higher for self-serve, regular unleaded than a year ago. On Feb. 18, 2005, the average was about $1.90 per gallon.
Despite the decline at the pumps in recent weeks, survey editor Trilby Lundberg cautioned that prices would likely rise substantially.
“A dramatic price surge is a strong possibility for this spring and summer even without higher crude oil prices,” Lundberg warned.
She cited several reasons for an expected surge in gasoline prices, including new regulations this year calling for more expensive ethanol to replace a cheaper additive, and the need for more refining capacity to go off-line for pre-summer maintenance.
“Supply will tighten and costs will rise right when we need more supply,” Lundberg said.
She added that concern in the market over potential international treats to the oil supply in nations such as Iran, Iraq and Nigeria could keep crude oil prices high.
“If crude does not correct downward, then that’s the equivalent of another 5 cents per gallon rise,” Lundberg said.
At $2.59 a gallon, Honolulu, Hawaii, had the nation’s highest average price for self-serve, regular unleaded gas, according to the Feb. 24, survey.
Portland, Oregon, had the survey’s lowest price, dipping below the $2 per-gallon barrier to $1.99.
