Gasoline prices in U.S. return to $3 territory

U.S. average pump prices broke back through the $3-a-gallon mark last week, the second increase in as many weeks as refinery outages and soaring crude oil costs took their toll, the government said Monday.

The national price for regular gasoline jumped 6.8 cents over the last week to $3.049 a gallon, up 6 cents from a year earlier, the federal Energy Information Administration said in its weekly survey of service stations.

The price is still far from the record high of $3.22 a gallon reached May 21.

Retail gasoline prices are expected to average $3 a gallon this month and climb to $3.07 in August because of rising crude oil prices, strong demand for gasoline and low gasoline inventories, the government has said.

But relief could be on the way. Gasoline futures fell 4.4% in New York trading Monday, the biggest drop in more than eight months, on forecasts that a government report this week will show a rise in U.S. inventories.

In California, pump prices averaged $3.158, up from $3.136 a week earlier, the government said.