The U.S. Energy Information Administration, or EIA, officially reported on March 1st that domestic gasoline prices have reached the second largest one week increase since 1990. CAP’s Valeri Vasquez has the story.
The cost of a single gallon shot up 19 cents between Monday, February 21st and Monday, February 28th. It’s a jump exceeded only by the week that Hurricane Katrina wreaked havoc across the Southeastern United States, spurring a 46 cent increase.
Closing out at $3.38 per gallon for regular grade gasoline, the landmark week fell short of the record $4.11 per gallon retail price set in July 2008. But that high price is not far off. Ongoing political turmoil in the Middle East could well push the cost of crude oil much higher, as the EIA explains:
Many factors affect retail gasoline prices, but changing prices for domestic and global crude oils are particularly important”¦. A $10 per barrel change in the spot price of crude oil translates into about a 24 cent per gallon change in the retail price of gasoline within about two months.
Given that the price of Brent crude oil has risen from $93 to $112 per barrel since January, Americans may be in for some difficult months ahead.
— Valeri Vasquez, CAP Energy Team Special Assistant.