Further surge in gas prices expected - Oil & Energy - MSNBC.com

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Further surge in gas prices expected
Wholesale gains are not yet fully reflected in pump prices
By John W. Schoen
Senior Producer
MSNBC
Updated: 6:37 p.m. ET April 11, 2006


WASHINGTON - With the summer driving season still more than a month away, gasoline prices have already started their seasonal climb � jumping 15 percent in the past six weeks alone. And that�s just the price you�re paying at the pump. With wholesale prices rising even faster, it�s a safe bet that the surge in pump prices isn�t over, analysts say.
In fact, pump prices are rising along with the temperature, and motorists should expect little relief during this summer�s heavy driving period according to a government report released Tuesday.
The official short-term energy outlook from the U.S. Energy Information Administration (EIA) projects the price for regular grade gasoline this summer will average $2.62 a gallon, 25 cents higher than last summer, barring any unexpected supply disruptions. Gasoline prices have soared since February.
Last week, motorists paid on average $2.68 a gallon nationwide for regular, an 18-cent increase in two weeks and 40 cents higher than the national average a year ago.
Growing demand, high crude oil costs, requirements for low-sulfur gasoline and greater demand for corn-based ethanol as an additive all �are expected to keep consumer prices for motor fuels ... high in 2006,� said the report.
The high prices are not expected to dampen demand during the April-September heavy driving season. Motorists are expected to use an average 9.4 million barrels of gasoline a day, or 1.5 percent more than last summer, according to the EIA.
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