Gas Prices in State, Nation Leap to New Highs on Supply Fears

Confirming the sticker shock being felt by motorists, the federal government said gasoline prices in California and the nation soared to record highs in the week ended Monday, with the average pump price in California taking its biggest weekly leap in four months.

The statewide average for self-serve regular jumped 11.5 cents to $2.716 a gallon. That broke the previous record set a week earlier of $2.601 a gallon and lifted the price 66.1 cents above its year-ago level, according to a weekly pricing survey by the Energy Information Administration, the statistical branch of the Energy Department.

It was the biggest one-week gain since the statewide average rose 12.8 cents in the week ended April 11. The jump came as little surprise to motorists who have seen prices for premium grades of gasoline climb above $3 a gallon around the state.

Nationwide, the average price soared 18.2 cents to $2.55 a gallon, the administration said. That eclipsed the previous U.S. record also set a week earlier of $2.368 a gallon; the latest price stood 67.5 cents higher than a year earlier.

By region, average prices ranged from $2.669 a gallon on the West Coast to $2.440 a gallon in the Rocky Mountain states.

Retail prices have skyrocketed in response to rallies in the crude oil and gasoline commodities markets.

The growth in demand for oil and refined fuels, combined with tight global supplies, has prompted traders to bid prices to unprecedented highs.

Problems at several U.S. refineries last week heightened concerns about supply disruptions and contributed to the price hikes.

But futures prices eased a bit Monday. The U.S. benchmark light grade of crude for September delivery fell 59 cents to $66.27 a barrel on the New York Mercantile Exchange.

On Friday, the oil contract had peaked at $67.10 a barrel before settling at $66.86, a record close since the Nymex contract began trading in 1983. Adjusted for inflation, however, prices remain well below highs set in the early 1980s.

Gasoline futures fell 4.27 cents to $1.962 a gallon from a record $2.005 in Nymex trading Friday.