A crude oil crunch sent gasoline prices soaring a record 12 cents per gallon in the past two weeks and they may not dip until summer, an analyst predicted.
The average retail price of gasoline nationwide, including all grades and taxes, was about $1.59 per gallon on Friday, up 11.99 cents from Feb. 25, according to the Lundberg Survey of 10,000 stations."The word 'increase' kind of pales," analyst Trilby Lundberg said.
The costliest gas -- premium at full-service stations -- flirted with the $2-per-gallon benchmark.
Consumers could take some comfort that when adjusted for inflation, the average overall price is still lower than the record set two decades ago.
"The true high was June 1980, with $2.66 for all grades combined using today's dollars," Lundberg said.
"It's more than a dollar lower in real terms. But in terms of speed, this is a true record-breaker," Lundberg added. "The rate of increase -- 6 cents per week per gallon nationwide -- has never been seen before."
Prices were higher in the West, where gasoline has been in shorter supply because of refinery problems last year.
San Francisco had the highest price for self-service regular, the most-purchased type of gas, at an average of $1.83 per gallon. That was up 21 cents in two weeks.
Cheyenne, Wyo., had the bottom price, at about $1.39 per gallon.
The high price of crude oil and short supply are driving all increases.
The International Energy Agency reported last week that the United States and the world's other richest countries have depleted their oil inventories to the lowest levels in four years.
The IEA's David Knapp said there is a shortfall in global petroleum supplies of about 2.5 million barrels per day.
The Organization of Petroleum Exporting Countries is worried about the recent price volatility, and analysts now expect the group to ease some of the production cuts that it made in 1998 and 1999.
However, Lundberg warned, don't look for an immediate dip in gas prices, because demand will be rising due to warmer weather and the start of the spring driving season.
"Even if the outcome of the March 27 OPEC meeting brings more oil supplies to the market, U.S. gasoline prices may hover around current levels or rise" in the next few weeks, she said.
Prices at self-service stations averaged $1.5450 for regular unleaded gasoline, $1.6385 for midgrade and $1.7234 for premium. Full-service prices were $1.8211 for regular, $1.9064 for midgrade and $1.9835 for premium.
On the Net: American Automobile Association: http://www.aaa.com
U.S Energy Information Administration: http://www.eia.doe.gov