Gasoline prices could soon jump by as much as 15 cents a gallon
along the West Coast and Northeast corridors, where motorists already
are paying some of the nation's highest prices.
The unexpected
surge is coming at a time when overall gasoline prices, which typically
slump after peak summer driving season, are at their highest autumn
levels ever.
The culprit: record-low inventories due to production woes at several U.S. refineries.
Nationally,
gasoline averages $3.78 a gallon, down from $3.83 last month but still
35 cents higher than Oct. 1, 2011's $3.43. Through September, gasoline
is averaging $3.64 a gallon, easily eclipsing 2011's record $3.51.
"The
two coasts are obviously the biggest sore spots," says Denton
Cinquegrana, editor at the Oil Price Information Service. "Refineries
are not operating at 100%; there are still nagging issues with shutdowns
and seasonal maintenance that are likely to continue and keep prices at
a plateau for much of October."
While supply shortages on both
coasts could lift the national average by a nickel or more, California,
where prices now average $4.17 a gallon, could see the biggest
increase. AAA spokesman Michael Green also expects higher near-term
prices in New York, Massachusetts and Connecticut, where gasoline
averages $3.91 to $4.12 a gallon.
"Time to get the
anti-depressants out," says Patrick DeHaan, senior energy analyst for
gasbuddy.com, a Web-based price tracker. "Not only will 2012 be the
highest-ever yearly average for prices, but it sets up a perilous start
for 2013."
Benchmark West Texas Intermediate crude oil closed up
29 cents to $92.48 a barrel Monday, highest since Sept. 21. But crude is
down more than 6% year-to-date.
Based on the cost of domestic
crude and seasonal driving patterns, gasoline should be averaging about
$3.50 a gallon, DeHaan says. Prices could still dip to those levels by
year's end, but DeHaan and other industry analyst expect most motorists
to pay $3.60 to $3.80 a gallon through November.
"People were
predicting $3 gas by the end of the year," Green says. "But no one was
expecting hurricanes and major refinery problems to still affect
production. Obviously, it's frustrating for motorists."
USA Today