Gas Prices on the Rise, Diesel a Deal

Memorial Day and the summer travel season are fast approaching, which means gas prices are on the rise again. People who were happy to see $2 gas earlier this year are now greeted by a national average of $2.27 for a gallon of regular.
Gas-chart

The price of gas has climbed 16 cents in just a week, 22 cents in a month. The increase is most likely tied to the rising price of oil in recent weeks. There's also the annual switch over to a higher blend of ethanol for warm weather months.

The good news is the average price of diesel fuel hasn’t risen as sharply as gas prices. The national average for a gallon of diesel is $2.28, up only 3 cents from a week ago and 1 cent higher than a month ago. Modern diesel cars like the VW Jetta TDI get roughly 30% better gas mileage than their standard gasoline counterparts.

And to make everybody feel better, analysts do not expect a repeat of last year's $4 gas prices when we hit an all-time high on July 17,2008 for both regular unleaded — $4.11 — and diesel — $4.84.

AAA Daily Fuel Gauge Report

By David Thomas | May 13, 2009 | Comments (13)
Tags: In The News

Comments 

$2.23 and rising here in New York.

DodgeFan

I still think we are getting scammed. Unless I saw a sudden spike in demand or decrease in supply there shouldn't of been a change. Show me the numbers.

That's a relief! I'm sure that Mahindra (Global Vehicles) is glad that diesel prices are inline with regular gas given that their trucks will go on sale in the fourth quarter of this year.

Nice to know that I won't get hosed when I travel this summer too.

As long as they stay below $2.50, I'm good. Was still shocked to see prices in the area shoot up ~20 cents to $2.15 a week ago in a matter of hours.

This is the time when diesel-powered vehicles seem enticing, yet from what I've seen, their prices are even more variable than gasoline.

Ziggy

Good ole summertime price gouging from the oil companies.

Al G.

@DodgeFan: I agree with you on this. It is a rip. I think the speculators are at it again. The more they speculate it seems the higher the prices go.
I read an article a few weeks ago where an analyst said by summer gas will top out at around $2.35/ gal. We are almost there and we haven't gotten through may. I wouldn't be suprised to see above $3.00/gal.
If a hurrican hits the gulf this summer then who knows what the price will be.

H

I wish I were an analyst...they get paid whether they're right or they're wrong and most of the time they are dead wrong.

Amuro Ray

Why would everybody thinks $2.50 is reasonable? We aren't like the Middle East - oil producing countries (huge quantity). With prices around the world so much more expensive to reflect the real price of gasoline - it's a "god-given" right for us to have cheap gas?

Anyhow, question to Dave T. - remember the $2.99 Gas Card that Chrysler was giving out last summer? What will happen to them now that Chrysler has filed bankruptcy?

AR,
well...they haven't been worth anything since gas went below $3. So unless you're in a place where it is I don't think it matters.

I believe the promotion was set up with a 3rd party however, so it should run until its original expiration regardless of what happens to Chrysler, but I'm not 100% on that.

So, what do you claim is a "reasonable" price for America to pay for a gallon? At this point in time, America can't subsist at Europe's $10/gallon or whatever it is...we'd simply crumble. Their entire infrastructure is worlds apart from ours.

Rarely do I see someone complain about the low cost of gas.

Carlton Perry

Amazing comment from AAA. The WSJ, NYTimes and other publications point to record levels of storage, declining demand and say that rising profits are due only to speculators gambling that they can drive up prices. How, why could AAA miss this?

DodgeFan

Ed Wallace column in businessweek has the best set of numbers on oil. He has had some nice articles calling it how it really is. I really enjoy reading those articles. Basically, this is continued demand destruction. That is only happening naturally cause European has the rebate to encourage turnover in cars. In fact, Europeans were importing clunkers from Eastern Europe to get the credit.

Doubled

Scam? You did put your card into the slot, and pick that grade fuel at that price, correct? You are the numbers - and I show you a mirror.

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