US gasoline price to hit record high-EIA economist
(Reuters 02/24 13:55:24)
WASHINGTON, Feb 24 (Reuters) - Rising crude oil costs will
likely push American retail gasoline prices to an all-time
high, a U.S. government energy economist predicted on Monday.
The national pump price for regular unleaded gasoline
reached $1.66 last week, just five cents short of the record
$1.71 a gallon hit in mid-May 2001.
"We think we're going to break the record," Dave Costello,
an economist with the Energy information Administration, told
Reuters in an interview.
U.S. crude oil prices topped $36 a barrel on Monday on
market fears of a U.S. attack on Iraq, low petroleum
inventories and strong oil demand. Crude oil costs account for
about 40 percent of the price of a gallon of gasoline.
Costello said even if crude oil prices do not further rise
dramatically, gasoline costs will continue their upward trend.
"There's still momentum in the gasoline prices," he said.
((Reporting by Tom Doggett; editing by Eric Walsh;
Reuters Messaging: tom.doggett.reuters.com@reuters.net;
202-898-8320))
REUTERS
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