U.S. Gas Prices Rise; California Prices Fall

The average price of regular self-serve unleaded gasoline hit $1.268 a gallon last week, up 1.8 cents a gallon, the U.S. Energy Department said. The price of gasoline nationwide is at its highest since June 1996. Prices have been rising since March, primarily because of higher crude oil prices, analysts said. In March, the Organization of Petroleum Exporting Countries agreed to cut production to boost oil prices. However, California’s average gas price, which has been inflated in recent months by supply problems, fell 2.6 cents a gallon last week to $1.422 a gallon. A year ago, California motorists were paying $1.162 a gallon. The U.S. average price a year ago was $1.014 a gallon for regular self-serve unleaded. Analysts are predicting that prices for oil will continue to rise this year.