Gas Prices Hit Highest Level Since Early ’86

Gasoline pump prices rose nearly a nickel a gallon nationwide the past two weeks to the highest level since 1986 because retailers passed on higher wholesale costs to motorists, an analyst said Sunday.

The jump followed a 10-cent-a-gallon increase two weeks ago after the Valdez oil spill, the single biggest jump in retail oil price history, said Trilby Lundberg of the Lundberg Survey of 12,000 gas stations.

In the latest survey, overall gasoline prices rose an average 4.86 cents to 115.44 cents per gallon from April 8 to April 21, the highest gas price since early 1986 when prices started a steady decline, she said.

The recent increases are due to higher wholesale costs caused by the Alaskan spill, a drop in OPEC production, a fire at a refinery and higher federal clean-air standards for fuel, said Lundberg.

Prices are expected to rise even more as these factors combine with the seasonal gas price increases caused by a greater demand at the pump by motorists taking spring and summer vacations, she said.

“Over the next two weeks, we can be sure that costs of gas will continue to rise through the peak summer driving weeks,” said Lundberg. “Over that same period, we see an acceleration in wholesale prices. It’s possible that many retailers will have to pass these new buying price increases on to the public.”

Lundberg said that prices could drop some if consumer demand drops and there’s a sustained international oversupply of crude oil, which is refined into gasoline.

Self-service prices on April 21 were 106.02 cents for regular unleaded, 120.86 for premium unleaded and 104.76 for regular leaded, according to the survey.

Full-service prices were 131.47 for regular unleaded, 142.79 for premium unleaded and 128.37 for regular leaded, the survey says.