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Gas price surge expected to ease off as rally fades

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The Tampa Tribune

Published: June 2, 2009

TAMPA - Gasoline prices in Florida continue to rise, but the pace of the increases could slow after jumping 39 cents a gallon in May.

Prices are being driven by reductions in refinery production and increases in wholesale costs, not a surge of consumer demand, said Gregg Laskoski of AAA Auto Club South.

The average price for a gallon of regular gasoline in Florida stands at $2.47, up 6 cents from a week ago but nearly $1.50 a gallon less than a year ago.

In the AAA report on gas prices, Laskoski said the increase should slow as the rally in wholesale prices for crude oil runs out of steam. The wholesale price increase is not being driven by the market basics of supply and demand.
Crude oil prices closed last week at $66.31 a barrel. That price would have to reach about $100 a barrel for gasoline to hit $3 a gallon, the report said.

A staff report

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