Gas prices take biggest leap since May, to $2 a gallon
Gas prices take biggest leap since May, to $2 a gallon By James R. Healey, USA TODAY 3/7/2005
Gas is well over $2 per gallon at this gas station in Los Angeles. By Ric Francis, AP
The price of gasoline jumped a hefty 7.1 cents a gallon the past week to a nationwide average $1.999 for regular grade, the highest in four months, the U.S. Energy Information Administration reported Monday.
That's the biggest one-week leap since a 7.6-cent increase in May during the run-up to a nominal record average $2.064 and was significantly more than the 4-cent rise EIA expected. (Video: Prices could go higher.)
Adjusted for inflation, gasoline would have to hit $2.973 to set a record.
Last week's increase is the seventh largest since EIA began weekly reports in 1990. The biggest one-week increase in the nationwide average for regular gasoline is 12 cents in late-August 2003.
In the wake of the big increase, EIA now agrees with energy watchers' predictions of record gas prices this month, although the government continues to suggest it won't be as high as the analysts' predictions of $2.16 a gallon or more.
Respected energy-price watcher Peter Beutel said last week that gas prices would go up 24 cents by midmonth. Tom Kloza, senior analyst at the Oil Price Information Service, predicted as much as a 28-cent increase by late this month.
Despite adequate worldwide supplies, speculators and petroleum traders are bidding up the price of crude oil, from which gas is made, to near-record levels. West Texas intermediate, also known as light, sweet crude, was $53.89 a barrel for April delivery, up 11 cents, at the close of trading in New York Monday.
The wholesale price of gasoline was close to $1.51 a gallon at the close of trading in New York. EIA says that retail gas prices historically run 60 to 65 cents higher than wholesale prices, suggesting that retail prices will rise at least another 11 to 15 cents a gallon if wholesale prices remain steady.
Monday's EIA report showed averages rising in all regions of the country. The biggest jump was 9.1 cents a gallon in the Midwest, bringing the average there to $2.009. California had the nation's highest average, $2.229, after a 5.3-cent increase last week.
Monday's average is 26.1 cents higher than a year ago.
Market Data 
Markets 
AI
