Tight petroleum supplies, refinery cutbacks cause spike in gasoline prices

By Xavier Zaragoza
The Douglas Dispatch
Published/Last Modified on Saturday, January 24, 2009 9:20 AM MST


Douglas motorists are paying more for gas.


Regular unleaded gasoline in Douglas is $1.81 a gallon, an increase of 10 cents during the last two weeks.

Statewide, motorists are paying an average of $1.83 per gallon, an increase of nearly seven cents from last week, said the American Automobile Association.

In addition, for the first time in nearly six weeks, Arizona’s statewide average has risen above the nationwide average, which increased by just more than three pennies this week to $1.850 per gallon.

“Tightened supply issues across the state have continued to result in local prices experiencing steeper price increases compared to other parts of the country,” said Linda Gorman, public affairs director for AAA Arizona. “While the situation is continuing to be addressed, Arizona motorists are likely to see further increases at the pump until it is rectified.”

This week, the disparity between the cost of crude oil and gasoline continued as state and nationwide prices showed gains despite crude oil trading in the low $40 per barrel range.

Locally, this can be attributed to tightened supply issues in addition to a nationwide trend of refiners cutting back production as a result of waning demand.

Despite motorists paying $1.074 and $1.160 less for fuel state and nationwide, respectively, compared to last year, the trend of falling demand has continued according to the Department of Transportation.

The agency said that Americans drove 5.3 percent less, or 12.9 billion fewer miles in November 2008 compared to the same time frame last year/

The cheapest gasoline in the lower 48 states can be found in Wyoming, where unleaded regular is $1.490 per gallon. California motorists are paying the most for fuel in the country with an average of $2.090 per gallon.

Comments

    Alex wrote on Jan 26, 2009 9:43 PM:

    " the oil companies found a way to raise gas prices. we need to move to electric cars to show them who the boss is! "

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