Gasoline Prices Rose 15% So Far This Year
January 26, 2009
Gasoline prices at pumps across the U.S. have risen 15 percent since the beginning of the year, a delayed reaction to refiners cutting back production late in 2008, the Wall Street Journal reported Monday.
U.S. gasoline prices rose 6.3 cents to $1.847 a gallon in the week ended January 19, according to government data. Data from AAA, the largest automobile club in the country, indicate that this number will be slightly higher in the next release of weekly figures, scheduled for Monday.
Whether the rise in retail gasoline prices is sustained will depend on the employment situation, as fewer workers means fewer commutes, and the ability of refiners to respond quickly to the appearance of supply gluts, particularly if European refiners take advantage of the opportunity to ship to the U.S., the newspaper noted.
The U.S. unemployment rate was 7.2 percent in December, and a record number of new claims for unemployment benefits has been reported in January, suggesting that joblessness is rising. Historically, unemployment levels above 7 percent have been associated with a significant decline in gasoline use, the paper added.
Posted by Michelle Krebs at 7:37 AM under Business | Comments (0) | digg this | Seed Newsvine
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