Gas prices rise as economy starts to turn

DELRAY BEACH — Gasoline prices have surged over the past week, and that might be a good thing.

The U.S. Energy Information Administration put the national average price of a gallon of regular at $2.24, up from $2.075 a week ago and $2.005 a month ago.

In Florida, gasoline is averaging $2.232 a gallon, up from $2.065 a week ago and $2.005 a month ago.

AAA put the Palm Beach County average at $2.308 Monday, up from $2.171 a month ago. As has been the case, it’s the highest average price among Florida’s metro areas. Miami was second at $2.30; Orlando had the cheapest gas, at $2.19.

Why might higher gasoline prices be a good thing? EIA in its monthly energy outlook said the sudden surge followed reports that indicated the economy is nearing a turning point and that demand is rising.

EIA sees crude oil averaging about $55 a barrel for the remainder of the year; it was above $58 late Monday. Gasoline should average about $2.21 for the summer. Gas should average about $2.30 a gallon in 2010.

The forecasts are based on the economy stabilizing and that a modest recovery begins later this year and continues through next year.

Meanwhile, diesel prices also are on the rise, averaging $2.126 a gallon, nationally, up from $2.186 a week ago.

DELRAY'S ONLINE BUSINESS AND COMMUNITY NEWSPAPER — PALM BEACH BUSINESS.COM
   
palm beach business.com
MAY 12, 2009 click to go home
 
     
click to go back to the top
Delray's Online Business and Community Newspaper