Gasoline Prices Continue Upward Surge

In reality, continually rising prices should serve as a wake up call for people to start exploring alternative fuel vehicles Photo By: Tim King

(SALEM) - Gasoline prices are still rising, and the national average now stands at more than $2.50 for a gallon of regular. That's an increase of more than 14-cents in the past week. In Oregon, the average price rose by about 11-cents a gallon to $2.47 in the same time period.

Salem`s average price rings in at $2.34 a gallon. That`s almost a quarter higher than the price last year at this time, when a gallon of regular was selling for $2.11.

Of the four measured metropolitan areas, Medford-Ashland saw the biggest increase of almost 15 cents per gallon and the average price there now exceeds $2.63. On the brighter side, statewide diesel prices essentially held steady at their already high averages.

Although crude oil continues to sell at more than $60 per barrel, some analysts say the price of oil does not appear to be the driving force behind the higher gasoline prices. Instead, they say, reduced refinery output is pushing prices upward. According to the U.S. Department of Energy, current gasoline demand is strong, but domestic gasoline production is only at about 85% capacity. A year ago, plants were operating at about 94% capacity. The exact reason for the reduced capacity is unknown, but industry reports suggest switching from MTBE-blended gasoline to ethanol-blended fuels is a major factor. The DOE also reports that national inventories are running behind the previous year, putting additional upward pressure on retail prices. At $2.47, Oregon's average gasoline price is 18th lowest in the nation. Hawaii has the highest statewide average price at $2.84. California's average price is up a dime to $2.67; Nevada's is $2.51; Washington's went up 12 cents to $2.50; and Idaho`s rose to $2.34. Wyoming has the lowest average price at $2.29. The national average diesel price now stands at $2.66 per gallon. In California, the average diesel price held steady at $2.88; in Washington, it dipped slightly to $2.87; in Oregon, it fell 2 cents to $2.79; in Nevada, it's $2.72; and in Idaho, it's $2.69.

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