Gas Prices Rise Slightly, Reversing Recent Trend

Retail gasoline prices rose about half a cent a gallon in the last two weeks as crude oil prices remained firm and demand increased because of the improving U.S. economy, according to a national industry report released Sunday.

However, supplies were strong and “it’s a very modest rise,” said Trilby Lundberg of the Camarillo-based Lundberg Survey.

The average national price Friday for a gallon of self-serve gasoline, including all grades and taxes, was about $1.55, according to the survey of 8,000 stations.

That was up 0.53 cent from the average on Nov. 7 and 11.34 cents higher than a year earlier.

The increase ended an eight-week decline, during which prices slipped nearly 20 cents after the end of a supply crunch.

Crude oil prices remained strong at about $31 a barrel, and “gasoline demand apparently is stronger on the recovering economy,” Lundberg said.

Moderate price increases are expected in the short term, she said. Bigger increases at the pump could result if the Organization of the Petroleum Exporting Countries decides to cut production at its Dec. 4 meeting or if there are problems with the rollout next month of gasoline blends with the pollution-reducing additive ethanol.

The national weighted average price of gasoline, including taxes, at self-serve pumps Friday was about $1.52 for regular, $1.62 for mid-grade and $1.71 for premium, Lundberg said.