Experts Predict Gas Prices Will Peak Soon, Relief for Summer (KFWB) --

For the first time ever, the price for regular gas now averages two dollars a gallon. Carol Thorp, with the Southern California Auto Club, says pump prices rose 12 cents in less than a month and are higher by 40 cents a gallon since mid-February. The highest price for gas is in Blythe ($2.17 for 87 octane regular).

Thorp says it is the annual pre-Memorial Day spike and energy officials say it should start going down after the holiday. A top federal energy official predicted prices will continue to rise slightly over the next two weeks then begin falling, unless new problems develop.

Anticipated demand for summer driving and vacationing has contributed to the rise in prices, but now refineries are allowing supplies to creep up by increasing production and finishing maintenance.

Drivers in the Midwest and West are getting the worst of record gas prices. Both areas have special requirements placed on "reformulated" gasoline sold there during the summer.

COMMMENT:

I hope their correct about prices coming down. Paid $1.92 for 87 octane regular in Garden Grove, CA this morning.

-- PHO (owennos@bigfoot.com), May 16, 2001

Answers

Average price of gasoline hits $2-per-gallon mark Prices could begin falling shortly after Memorial Day holiday

From wire reports

May 16th, 2001

Average gas prices for the state and Southern California have reached a record $2 per gallon for the first time ever.

This is the fourth consecutive month of increases and brings the total Southern California increase to 40 cents since mid-February, according to the Automobile Club of Southern California’s monthly Fuel Gauge report.

The Southern California average price for regular unleaded fuel is $2 -- a 12-cent increase from a $1.78 average price on March 13.

This compares with $1.66 per gallon average in May 2000.

The lowest average price in Southern California and the state continues to be in La Habra, where the price increased to $1.88 a gallon.

The highest average price for regular gasoline in the state and the nation can be found right here in Riverside County were the price at the pump in Blythe averages $2.17 per gallon.

In the Palm Springs/Coachella Valley region, the average price for regular unleaded was recorded at $2.03, and the price for premium unleaded reached $2.23 on average.

The average is $2.13 in San Francisco, up 11 cents from a month ago.

Las Vegas is up 16 cents to $1.89 per gallon during the same time period.

Nationally, the average for a gallon of regular unleaded rose 13 cents to $1.72. The lowest statewide average price in the nation is in Georgia, where the price of gasoline averages nearly $1.50 per gallon.

While crude oil prices seemed to have stabilized around $28 per barrel, the increasing gasoline prices reflect an expected increase in demand for summer.

Analysts expect the price of gasoline to reach a plateau near the Memorial Day holiday period and -- barring any unforeseen refinery disruptions or other supply problems -- begin to ease lower in some areas if gasoline supplies increase later in the summer.

-- PHO (owennos@bigfoot.com), May 16, 2001.

And since the BTU's per gallon for regular are lower than premium consumers are paying even more than they see.

-- David Williams (DAVIDWILL@prodigy.net), May 16, 2001.

"energy officials say it should start going down after the holiday."

Has anyone ever since prices go down after Memorial Day? Who are these energy idiots anyway? Yeah, since the energy officials said it, then I'm real confident gas prices are going down. I'm going out and buying an SUV right now!

-- Guy Daley (guydaley1@netzero.net), May 17, 2001.