"Gasoline prices hit a new record at the pump on Monday, but gas futures prices fell on concerns that $3 gas will crimp demand. Oil prices, meanwhile, rose on reports of refinery problems in the U.S. and abroad.
The average national price of a gallon of gas hit $3.073 on Monday, up almost a penny from Sunday's also record-setting price, according to AAA and the Oil Price Information Service. Gasoline is now well above the previous record of $3.057, set on Sept. 5, 2005, soon after Hurricane Katrina.
"Tightness in the U.S. gasoline situation will continue to drive the market ... because the summer driving season is right around the corner," said Victor Shum, energy analyst with Purvin & Gertz in Singapore. "There's not a lot of time for refineries to catch up with demand."
How painful is that. It's already 3.45 per gallon where I live and I can't really imagine it getting that much higher. I know my friends in Northern California are paying even more, but that's understandable. But people in Arizona are paying a fraction of what we are paying. Ah, are the demands really that dramtically higher to constitute such a high spike in prices?
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