AAA: Brace for Higher Pump Prices
{{#rendered}} {{/rendered}}U.S. drivers, already paying the highest retail gasoline prices on record, should expect further increases at the nations pumps due to skyrocketing costs for crude oil (search) and a flurry of recent refinery problems, the AAA motorists group (search) said on Thursday.
"We think American drivers should brace themselves for a fairly large increase, as soon as this weekend," said Geoff Sundstrom (search), AAA spokesman. "It could be an increase of around five cents a gallon nationwide."
Prices at the pumps are already zipping along at a record near $2.40 a gallon on average, up more than a dime from last month, according to the AAA's daily survey of 60,000 stations.
{{#rendered}} {{/rendered}}But a recent surge in the cost of crude oil to $66 a barrel, and a spate of problems at the nation's refineries, from California to the Gulf Coast, will mean further steep increases in fuel prices.
"The price of crude oil is a big reason pump prices are in record high territory," said Sundstrom.
"On the other hand, we have a long-term issue to resolve with regards to refining capacity. With fires and operational problems of various kinds recently, it looks like gasoline supplies have become crimped," he said.
{{#rendered}} {{/rendered}}Around 10 U.S. refineries have reported unplanned unit shutdowns since mid-July. Refineries typically become more prone to outages in late-summer as they try to keep up with strong demand.
While U.S. retail gasoline prices are at a record in nominal terms, when adjusted for inflation they remain below the peak of around $3 a gallon hit in the early 1980s.