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Gallon of gasoline up 3.2¢ and hits a six-week high

Monday’s crude prices highest since mid-March

SHARE Gallon of gasoline up 3.2¢ and hits a six-week high

The average U.S. retail price for regular-grade gasoline rose 3.2 cents in the week ended Monday to a six-week high of $1.51 a gallon, the government said.

Prices climbed most in the Midwest, where gasoline jumped 5.9 cents on average to $1.499 a gallon, the U.S. Energy Department said in a weekly report. Cleveland prices surged 9.3 cents to $1.528, and Chicago gasoline rose 4.6 cents to $1.565. On the East Coast, the fuel increased 1.9 cents to $1.511.

Retail gasoline has rebounded from an 11-month low in mid-December as refiners and distributors passed along increased crude-oil costs. Crude prices Monday reached the highest level since mid-March, based on futures traded in New York.

Pump prices have still declined most of the past four months, as fuel inventories grew and motorist demand slowed after the summer travel season. Gasoline supplies nationwide are the highest since late July.

The latest U.S. average price is down 14 percent from a record $1.747 a gallon in the week ended Aug. 25. It is up 4.6 percent from $1.444 a year ago. During the week ended Dec. 15, the average fell to $1.465, the lowest since January 2003.

Prices are based on a survey of about 900 filling stations in 50 states.

Crude prices have risen 13 percent since the start of December, reflecting concern over shrinking U.S. supplies and speculation that cold weather will prompt refiners to boost heating-oil production.

The cost of crude accounts for about two-fifths of the retail price of gasoline, and the balance is taxes, refining, distribution and marketing.

Crude oil for February delivery rose 3.9 percent to $33.78 a barrel Monday on the New York Mercantile Exchange, the highest price since March 17.

Retail gasoline on the West Coast climbed 2 cents on average to $1.599 a gallon the past week, the most expensive in the U.S., according to the Energy Department. In San Francisco, gasoline was $1.644, up 2.8 cents.