U.S. Pump Prices Soar to a Record

The average price of gasoline nationwide soared to a record high in the latest week, and California pump prices also jumped to near record levels, the federal government said Monday.

With gas prices surging more than a dime a gallon in several major cities, the U.S. average for self-serve regular climbed 10.2 cents to $2.328 a gallon, according to the Energy Information Administration, a statistical arm of the Energy Department.

That surpassed the previous high of $2.280 a gallon set April 11, and left the nationwide average 41.1 cents above its year-earlier level.

California’s average price rose 6.8 cents to $2.525 a gallon, lifting the price to just a few cents below its record high of $2.592 a gallon, also set April 11, the administration reported.

In Los Angeles, the average price rose 6.6 cents to $2.523 a gallon. Elsewhere around the country, the price in Cleveland soared 16.5 cents to $2.336 a gallon, rose 13.7 cents in Boston to $2.388 and jumped 12.1 cents in New York to $2.383 a gallon.

The increases weren’t unexpected, and the administration had forecast in April that the U.S. average retail price could reach $2.35 a gallon or more.

Pump prices have been rising sharply for several reasons: Motorists’ demand for gasoline remains strong with the summer driving season in full swing, supplies of fuel remain tight, and the price of crude oil -- which accounts for about half the price of a gallon of gasoline -- surged to fresh highs recently.

Last week, the U.S. benchmark grade of light crude oil climbed above $61 a barrel for the first time, and set a New York Mercantile Exchange closing record of $61.28 a barrel Wednesday.

Prices have slipped since then, and oil for August delivery fell 71 cents to $58.92 a barrel Monday after Hurricane Dennis largely spared oil and natural-gas production platforms in the Gulf of Mexico and refining facilities in the Gulf states. Traders earlier had feared that damage from the hurricane might disrupt supplies and send prices soaring.

Whether oil’s downturn eases retail pump prices remains to be seen. But Monday, the August gasoline futures contract fell 3.1 cents to $1.732 a gallon on the Nymex, and heating oil lost 3.63 cents to $1.682 a gallon.