Record gasoline prices are expected to continue until at least June
because of continuing production problems at US refineries and low imports, The
Wall Street Journal reported yesterday.
US retail gasoline prices this week hit an all-time high of US$3.22 a gallon
on average, according to the Energy Information Administration (EIA).
Guy Caruso, chief of the Energy Department's statistics arm, concurred with
suggestions that retail gasoline prices have not peaked.
He cited continuing problems in Nigeria, a source of easier-to-refine grades
of oil for world markets, as well as that nation's need to import refined
products such as gasoline and diesel for its own use.
Nigeria "is putting pressure on the global market for refined products," he
said. "I am very hesitant to say we've reached the peak."
Retail gasoline prices have been on the march this year. A series of refinery
outages and consistent demand from consumers have been the main reasons behind
this.
The average price released by the EIA is up 11.5 cents from last week. It is
a fraction of a cent below an inflation-adjusted monthly high reached in March
1981. This week's price is up 32.6 cents from a year ago.
Prices are expected to ease once refinery capacity returns and higher prices
draw imports from other parts of the world, the report said.
At a separate energy gathering, Energy Secretary Samuel Bodman said, "We seem
to be recovering, and hopefully we'll see mitigation of concern soon."