Gas prices creeping higher

Because of the weakness of the U.S. dollar (it hit a 14-month low versus the euro last week) energy markets and crude oil are attracting investors and that has pushed crude oil to close Friday at $71.77 per barrel on the New York Mercantile Exchange (NYMEX).

Nationwide, the 1-cent per gallon increase this past week is the first increase since the week ending Aug. 5 posted a 5-cent increase over the week prior. At the same time, consumer demand remains tepid at best even with signs that the economy may be improving. For now, with oil trading in a narrow range and gasoline prices at $2.50 or lower, it’s an equilibrium that has both consumers and producers content.

But, how long will it last? According to Retail Fuel Watch, “Right now the actions being taken by producers aren’t having a huge impact on prices. Capacity is being cut in the face of non-existent demand. However, let demand rebound later in the year or next year and the potential mismatch between higher demand and lower capacity could jolt prices. A significant price jolt could bring the idled capacity quickly back on the market too.”

The national average price of unleaded regular gasoline is $2.47 per gallon, up 1 cent in the past week. Florida’s average today at $2.43, Georgia’s at $2.28 and Tennessee’s average price of $2.28 have increased by 3 cents, 2 cents, and 2 cents respectively in the past week.
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CURRENT AND PAST PRICE AVERAGES
Regular Unleaded Gasoline

Current           Week Ago      Month Ago     Year Ago
National:                    $2.479            $2.461             $2.580            $3.291
Florida:                      $2.431            $2.402             $2.524             $3.391
Georgia:                     $2.281            $2.268             $2.367             $3.488
Tennessee:                 $2.283            $2.263             $2.376             $3.355

AAA’s Daily Fuel Gauge Report (fuelgaugereport.com) is updated each day and is the most comprehensive; reflecting actual prices from credit card transactions within the past 24 hours at two-thirds (100,000 stations) of the gasoline stations in the U.S. Its accuracy is unparalleled.

How much are you paying for gasoline taxes in North Carolina/ Florida/Georgia/Tennessee? Use this link: http://www.aaasouth.com/acs_news/gas_taxes.asp to find out.