Gas prices reached record-high average in 2012
Drivers may find relief in 2013 as demand settles, but crude-oil prices remain high and unpredictable.
Refinery outages and high crude-oil prices drove gasoline prices to a record average of $3.62 per gallon in 2012, despite some of the lowest demand in at least 30 years.Last year, gasoline prices were nine cents higher than in 2011 and 35 cents higher than in 2008, the first year prices averaged more than $3, according to the Energy Information Administration.
It was the second year in a row that average gas prices stayed above $3 during every week. As of Sunday, only eight states posted average prices below $3 per gallon, according to AAA. Diesel reached a record average of $3.97 per gallon.
As usual, drivers in the Rockies and Gulf regions paid the least, at $3.61 and $3.48 per gallon, respectively. Drivers along the West and East Coasts saw an average of $3.98 and $3.70. Of 10 major cities ranked by the EIA, prices in San Francisco and Los Angeles fluctuated by at least $1.15 throughout the year, compared with 62 cents in Boston and New York.
The EIA blamed unexpected refinery outages -- on the West Coast during the winter and on the East Coast during fall -- along with routine shutdowns as refineries in the Midwest switched from winter- to summer-grade gasoline. Of course, superstorm Sandy wasn't any help, nor were new oil sanctions on Iran. Crude oil made up two-thirds of the price of gasoline, according to the EIA.
Several factors were promising, but did little to quell an overall volatile oil market. Crude-oil prices finished the year at less than $92 per barrel and reached more than $108 over the winter, but never came near July 2008 when prices surged to more than $145. Drivers also continued to cut their gasoline purchases. As of October, the latest data available, retail sales were down 44 percent since the same month in 1983.
According to AAA, gas prices should peak at lower levels this year -- up to $3.80 versus $3.94 in 2012, the association said -- if production continues and major storms pass over without serious damage.
Despite the positive implications, lower gasoline demand and fewer vehicle miles traveled have the federal government hot and bothered. Last week, the Government Accountability Office suggested implementing a mileage tax to cover a shortfall in highway funds and gas-tax revenues. For the time being, it's just talk.
[Source: EIA, AAA; Photo: AP/NBCNEews.com]
Yeah, the prices may hae hit a record high, yet I wonder if the oil companies profits for just a few were also high on the record charts
Gas price mainpulation has not just effected a poor economy but also many businesses that rely on travel. Why should the prices go up significantly during the summer months? Such has severe negative effects tourism and the town, city, states dollars of relation.
And when these Companies distribute huge bonueses to the Board, the CEO CFU COO and more, then confirms the manipulation of price for profits only!
Yet I am forced to wonder how and when profits overcame service!
I was listening to the news while driving to appointments. They had a segment on how
gas prices where down and would continue to go down into 2013. I looked at the sign
on the lowest priced station in town Arco. They had just jumped their price from $3.29
to $3.49 over night. All other stations followed that day or the next. So now we are a
low of $3.49 many at $3.69 and some at $3.89. This is all for the cheapest unleaded.
Christmas must be over, they didn't listen to the news and decided it was time to hose
the consumer again.
Wow, what a surprise. Obama and the Democrats declared when Obama was first elected that they wanted prices over $5 per gallon, and they've continued to work their way towards it.
And all you Libs/Dems/Progs whined so mightily when prices spiked under the Bush administration. What a bunch of gullible morons. You got exactly what you asked for.
How's all that "hopey-changey" garbage working out for you all?
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