Gas prices inch closer to $4

By XAVIER ZARAGOZA
The Daily Dispatch
Published/Last Modified on Friday, June 6, 2008 3:07 PM MDT


  Gasoline prices have jumped nearly a dime, bringing the price closer to $4 a gallon.


Drivers are now paying an average of 26 cents more per gallon than they were two weeks ago, said the American Automobile Association.

In 14 states, the prices of gas have already pasted the $4 mark.

In Tucson, though, motorists there are experiencing the lowest fuel prices in the state at about $3.72 per gallon, the AAA said.

Scottsdale motorists are paying more for gas at $3.98 per gallon.

In Douglas the lowest is at about $3.79 a gallon with the highest a $3.95 a gallon.

This week, the Department of Energy delivered a mixed report that revealed a drop in crude supplies and an increase in gasoline inventories.

The report, coupled with lackluster demand for fuel, resulted in crude oil backing away from its all time high of $135 per barrel established late last month, the ASS said.

• Also this week, General Motors (GM) acknowledged the need for more fuel-efficient vehicles as a result of current gas prices. In its announcement, the company revealed that it will begin to produce fewer trucks and SUVs in exchange for several smaller and more fuel-efficient vehicles, including an electric vehicle that it plans to introduce to the market by 2010.

"This week's announcement by GM is a recent example of an auto manufacturer responding to consumer demand for more fuel efficient vehicles," said AAA Arizona Public Affairs Manager Linda Gorman. "This is a significant announcement coming from a domestic manufacturer that has been long-associated with producing the largest vehicles on the road. We applaud auto manufacturers for their efforts in making these investments in more fuel efficient vehicles."

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