Anti-Smog Regulations Cause Jump in Pump Prices

greenspun.com : LUSENET : Grassroots Information Coordination Center (GICC) : One Thread

May 21, 2000 - 08:08 PM

Anti-Smog Regulations Cause Jump in Pump Prices The Associated Press

CAMARILLO, Calif. (AP) - Gasoline prices jumped 5 1/2 cents per gallon in the past two weeks as federal antismog regulations bit deep on the East Coast and in the Midwest. The higher cost of refining gasoline to meet stricter regulations, coupled with higher crude oil prices, pushed the average nationwide cost to $1.5841 per gallon Friday, analyst Trilby Lundberg said Sunday.

That was up 5.46 cents per gallon from May 5, according to the Lundberg Survey of 10,000 stations nationwide.

After falling nearly 7 cents per gallon, the price is now within about a penny of the year-to-date high of $1.5958 recorded March 24.

Higher crude oil prices played a smaller role as the futures price rose about $2.60 cents per barrel over the past two weeks to $29.89 a barrel Friday, after rising above $30 a barrel the day before.

"Government regulations are driving the higher costs of driving," Lundberg said. "Environmental protection has forced costly reformulation of gasoline. In fact, it's as powerful as OPEC, right now."

The reformulation to reduce sulfur and other pollutants affects about a third of the nation's gasoline supply. However, because the price impact already is here, it is "very possible" that prices won't jump much further during the peak summer driving season, Lundberg said.

The increases varied widely from region to region. California saw price dips. The state already had some of the highest prices because of tight supplies and its gasoline was reformulated years ago.

Other cities are "catching up with what California has experienced since 1996," Lundberg said.

Overall, West Coast prices fell 4.24 cents per gallon, while the Eastern and Gulf coasts rose about 4.5 cents or more.

The Midwest was hardest-hit with an average jump of nearly 13 cents per gallon. Much of that was due to Chicago, which had the highest price at $1.8359 for regular self-serve gas, up 18.16 cents per gallon.

San Francisco, which had the highest price two weeks ago, dropped nearly 3 cents per gallon to $1.7729. Atlanta had the lowest price at $1.3831, but that was up nearly 9 cents.

The national average price of gasoline, including taxes, at self-serve pumps was $1.5366 per gallon for regular, $1.6333 for mid-grade and $1.7170 for premium. At full-service pumps, the average was $1.8461 for regular, $1.9357 for mid-grade and $2.0105 for premium.

http://ap.tbo.com/ap/breaking/MGI197JCJ8C.html

-- Martin Thompson (mthom1927@aol.com), May 21, 2000


Moderation questions? read the FAQ