Gas Prices Hit An All-Time High

Lundberg Survey: National Average Price For A Gallon Of Regular Is $3.18

(CBS)  The national average price for a gallon of regular gasoline is $3.18, according to the latest Lundberg Survey. As CBS News correspondent Randall Pinkston reports, that is the highest average cost per gallon ever in the United States – even adjusting for inflation.

These days, every trip to the gas station is an experience in sticker shock. A gallon of regular gas costs $3.24 in New York. It's $3.45 in Milwaukee, and $3.59 in Chicago.

This weekend alone, from Friday to Sunday, the average price of gas went up another 5 cents per gallon.

A gallon of mid-grade gasoline averaged $3.29, and premium cost $3.40, according to the latest Lundberg Survey of seven-thousand gas stations across the country.

The price hikes are giving oil companies another banner year. First quarter profits for Exxon-Mobil totaled nearly $9.3 billion. Royal Dutch Schell picked up more than $6.9 billion. The number was $4.7 billion for Chevron.

In a December interview with CBS News, Shell's president defended the industry's high profits.

"The profits are high because the crude price is high, and the cost of producing that crude has not materially changed," John Hofmeister said. "Future investments cost more money."

Oil executives downplay the amount of fuel that can be produced from home grown sources like ethanol.

"I think independence is naive," Hoffmeister told CBS News.

U.S. inventories are at record lows for the pre-summer season – a sure fire formula for higher prices in the future. But many consumers are hurting right now.

To cope with climbing prices, commuters like Denise von Wilke are looking for every possible way to save. She drives more slowly and car pools with a co-worker for her 47-mile trip to work.

Von Wilke also uses the Internet to find bargains. She says she can find the lowest gas prices in all of New Jersey from her desk.

Across the country, the lowest price for regular fuel was $2.87 in Charleston, South Carolina, and the highest was in Chicago at $3.59 a gallon, according to the Lundberg Survey.

Higher fuel costs are driving many Americans to mass transit. The American Transportation Association reports more than 10 billion trips on trains and buses last year – the highest use of public transportation in 49 years.

[aweym]

Gas prices are out of control. Most of us are suffering from yet another crazy expense. We can barely afford to drive ourselves to work if we make anything close to minimum wages. Just a few years ago it cost me less than $20 to fill up my tank, now it costs nearly $40 - $45. Talk about doubling your bills. It's outrageous to think that the gas companies are defending the $9.3 BILLION profit that they've made already, and think it's acceptable. People are suffering; businesses that rely on travel to conduct their business are suffering, and as a result charging more for their goods. Taxi companies are charging higher prices, grocery stores are charging more. It's a phenomenon. Where does it stop?

[hypnotoad72]

Wasn't the last refinery built in the US in 1976? Why were no more built? Who's been in charge of the existing refineries and allowing them to fall to pieces?

And as executives get the largest salaries because their decisions can make or break a company, surely they have some responsibility? "With property comes responsibility." - Fulton J Sheen (1895-1979).

Also, if the economy crashes, all this so-called wealth of theirs is going to mean nothing. Now there are many ways these same dudes can retain their power and status without making everyone else suffer with high prices; a spiral that's starting to go out of control: Light rail, hybrids, electric cars (the battery and motor technology has existed since the mid-1960s...). And we'll always need plastic. They will NOT be hurt to let our society move forward again.

What bothers me is how the gas prices could go down so much before election '06 and then get back up within a 6 month period of time. Quite a coincidence, but the Dems' inability (or lack of desire) to do anything about it speaks volumes too. Not that their majority is big or that anything attempted wouldn't be vetoed - after all, it's not often to have a president whose entire tenure consisted of 2 vetos - and only after the opposition party won control (by the slimmest of margins too.)

[feelfree1]

Didn't Bush once claim that if Gore was elected, we'd be paying $2 per gallon of gas?

Think how much we could have saved!

[reel-crazy]

The earnings reports of big oil will once again break records by staggering proportions. Wait until the holidays and they have it another buck a gallon higher and then drop it down 30-40 cents and give us all a break. Greed, criminal greed at all of our expenses....

[jumkey]

Who-hoo! Thanks Conservatives!!

A Republican oilman in the White House = sky high taxes, gas prices at record levels, endless war, huge deficits and gross mis-management at every level.

About the only thing these Republican idiots haven't given us is starvation, but it's probably next.

Brilliant! The Red States want more of the same!!!

[shanev137]

I hope it goes to $4.18 next week and causes double-digit commodities inflation....and I hope Exxon makes an extra $50 Billion in net profit off all you stupid people in the process.

[shanev137]

LOL...and hurricane season ain't even here yet!

[blackbug99]

Since, BTW, almost 80 cents on the gallon is taxed to us, for roads etc. And, we subsidize the oil industry...Who, also BTW, are making outlandish profits...Why not tax them higher? Or, stop subsidies? We're paying people to take money from us.

[pwhited-2009]

Two things:

I keep hearing people saying "Gas cost more back in the late 60's if you adjust for inflation". Well, I'm no wizard when it comes to that, but I used to fill up a 1965 Ford Galaxie with a big V8 for 6 dollars. It cost about 70 to fill up my Astro today. Adjust for inflation all you want, but it was a lot easier for me to come up with 6 dollars back in the late 60's than it is for me to dig 70 bucks out of my wallet today.


People are complaining about gas prices but not doing a lot to change their driving habits. They are driving 85 mph on the freeways b*tching about the price of gas. Slow the hell down!

[shanev137]

I think Big Oil should just pull another Katrina, but this time, take gasoline to $10 a gallon over night and get rid of all the riffraff in this country. If someone can't afford a $15 box of cereal and a $10 gallon of milk....what good are they anyway?

[kvett]

This is a fascinating discussion. The current level of gas prices is a logical consequence of supply and demand. Everyone with a half a brain (that means the "president" doesn't qualify) knew that this was coming. It won't be economically effective to introduce any alternatives until it gets to about $5/gallon, so brace yourselves. Yes, it is sad that the big oil is trying to maximize its profits, but one can't blame them - most of us would. Logically the only way out is investing in research and producing fuel efficient hybrids (the required research, infrastructure and replacing all of the cars in the US in a two year period from the moment we actually start doing something is going to cost a mountain of cash - maybe about as much as the Iraq war has cost - nearly 400 billion by now - if you count all of the side effects including the tens of thousands of crippled US soldiers it could climb to a TRILLION)... Yes, and everyone will have to minimize consumption... Yes, we should have been working on alternatives for the past 10 years... Yes, there is going to be an economic slump... but if nothing is done, the economy will collapse completely... Get involved if you can... Good luck...

[devanejackie]

IT ALL STOPS AT DEATH -- ONLY

[nothappyatall]

"Eddie Engels of Chicago finishes pumping over $83 of gas into his SUV"

LOL note he has an SUV, if he can afford that he shouldn't complain about the gas.

"Von Wilke also uses the Internet to find bargains. She says she can find the lowest gas prices in all of New Jersey from her desk. "

Yeah and then since about 3 companies now control all the raw refineries, she isn't likely to find differences more than 2-3 cents a gallon, so she drives 30 miles and burns a gallon of gas to save 75 cents on a fillup- SMART!

[larryb071]

Has no one taken notice of the fact that crude prices are lower now than at this time last year. Higher gas prices are a direct result of our presidents connection to big oil. That and our vice presidents connection to Haliburton. This is a "Duh" moment people...

[king77shaw]

MISSION ACCOMPLISHED !!!

http://www.youtube.com/watch?v=cjfoXbyffso&mode=related&search=

[stezzer]

$8.00 a gallon in England. No wonder they sell it to us in liters, It doesn't feel as painful.

Whatever it takes America, don't lose your freedom to drive. Us Brits will be back to driving horses and carts soon.

Mind you, they'll probably just tax the hay instead.

[markster6]

for those upset about fuel prices, you need to recognize this:
We are close to "peak oil" which means worldwide production will begin to decline. Unfortunately this is only the beginning of a very painful transition away from oil. Demand will continue to increase, supply won't keep up....hence prices will skyrocket.

here are some ideas for you:
buy a honda civic hybrid for about $23000, and you'll get an average of 50 mpg.
find a job closer to home, or move closer to work.
get a motorcycle license.
carpool.
use public transportation.
make one trip to the supermarket per week instead of 15 trips/wk.
tell your congressman to require automakers to build cars that get 50 mpg+, and use green fuels.

now stop crying about gas prices...you're better off than the Europeans.

[jfbesq]

Last year I traded my BMW X-5 for a Toyota, so it's still cheaper to fill up, but not for long. When gas hits five bucks a gallon gas engine cars will go the way of the buggy whip, God willing, and all those greedy sob's in the oil industry will have to put their capital into alternative fuel technology, and then we can start treating the middle east as wonderfully as we do Africa.

[jfbesq]

A year ago I saw this coming so I traded my BMW X-5 for a Toyota, so it's still cheaper to fill up, but not for long. When gas hits five bucks a gallon gas engine cars will go the way of the buggy whip, God willing, and all those greedy sob's in the oil industry will have to put their capital into alternative fuel technology, and then we can start treating the middle east as wonderfully as we do Africa (because we'll need it just about as much).

[ilsadago]

$3.35/gallon in the midwest - Kalamazoo and surrounding areas. That's for Regular not Premium.

Someone mentioned that they think this is Bush's connection to oil driving up the prices. Try a little research. Don't believe the hysteria. Oil companies are owned by lots of people. The gas refineries are owned by lots of people - stock holders who like profit. That could be you if you have a 401K/403B, etc....that has oil companies in their portfolios. That's Capitalism. The American way of life. We also like big cars, hate public transportation, and think car-pooling is for other people. Next time you want to look for a culprit for high gas prices, look in the mirror - not the TV.

[jfbesq]

I got rid of my SUV a year ago and bought a Toyota so my gas fillup is not quite as expensive as it was a year ago, but it is quickly catching up. I figure when gas hits five or six bucks a gallon the U.S. public will get p*ssed off enough to do something about it; hopefully to demand the government sponsor dev of hydrogen powered cars or something like that. So let's hear it for the oil people because, God willing, they are numbering their own days. Then we can start treating the middle east countries as wonderfully as we do the starving African ones.

[rudy654-2009]

"now stop crying about gas prices...you're better off than the Europeans."

In other words, take like a man, and smile while being ripped off by a monopoly that gets your tax dollars whether you buy gas or not.

[sparks224]

I'm going to attach some lead weights to my SUV and make it even better!

[rudy654-2009]

"Then we can start treating the middle east countries as wonderfully as we do the starving African ones."

Have you heard about Nigeria? That African country actually supplies us most of our gas, and yet the people are still starving. But I see that Shell and them will buy the people a t-shirt to show their support.

[shanev137]

"Iraqi oil will pay for the war"

*** Cheney - 2003

[bareemperor]

Thank you, Mr. Bu$h.

And thank you, Bu$h supporters.

[preacherbob1]

Smell the roses!

[radiob-2009]

thanks to the hedge funds Soros and others that are manipulating the futures of oil. If the citizens of the US would stop buying oil products for a week or two we could really thank you.

[incog-nito]

Part of the problem, is people's insistence on buying big, oversized as an "expression" of themselves. Fuel-efficient vehicles have always been available, but until recently they weren't in very much demand. If people feel the need to out-accelerate the guy in the next lane (as if it matters), or to occupy two parking spaces instead of one, then they have themselves to blame.

[king77shaw]

A CALL TO ACTION !
small steps that each of us can take to wrestle control back from the Republican neo-con elite that are destroying America %u2026

1) CANCEL YOUR CABLE TV: let the corporate media moguls know that you can no longer support the propaganda .. get your news from PBS .. you learn to live quite nicely without the other cable shows you thought you needed - the truth is more important than cable tv %u2026

2) STOP INVESTING YOUR MONEY ON WALL STREET: %u201Cbut it%u2019s doing so well%u201D %u2026 reason - corporate America is selling out the middle class to the lowest global bidder and using our own money to do it; let%u2019s face it, the financial markets will push for anything that increases profits - even war; especially war %u2026 which is why the stock market is at record highs while a) the middle east is in utter chaos; b) national, trade and personal debt/deficits are at all time, unsustainable highs; %u2026 best to invest your money in land, real estate or gold and silver%u2026

3) SUPPORT LOCAL ECONOMIES !
if possible, BURN WOOD for heat;
GROW YOUR OWN FOOD or support local growers;
implement alternative energy sources (solar, hybrid autos etc ..)

4) DECENTRALIZE ! - the global economy is nothing more than a ploy to centralize power, control and wealth into the hands of an elite few - blinded by misinformation, the American people are buying right into it - the rich get richer and the middle class is quickly becoming the working poor ...

[itgranny]

They keep harping at us that we need to cut down. I guess I believe I have. While not everyone has, there are a lot of us that do think twice about getting in the car and driving 20 miles to get that loaf of bread.

I don't believe they're getting to the bottom of this. Read this article and see if you don't feel like I do at the end of it.

http://www.msnbc.msn.com/id/18769529/

The gov. is tippy toeing around so as not to do anything that might suggest the oil co. are doing anything bad, even when the numbers don't add up. UBS is an investment firm. You can be assured that they're going to only report things that support the oil companies, not the public.

[rudy654-2009]

"Higher fuel costs are driving many Americans to mass transit. The American Transportation Association reports more than 10 billion trips on trains and buses last year %u2013 the highest use of public transportation in 49 years."

Not according to AAA!! They said they took a poll and Americans were driving more than ever, in record numbes. Who can we believe?

[searingtruth]

Gas prices go up by 50%, no matter what the cost of a barrel of oil, and oil company profits go up by 50%.

Go figure.
ST


"Our representatives had become politicians, precluding all hope of justice."
SearingTruth

A Future of the Brave - www.searingtruth.com

[sparks224]

itgrammy,
Don't drive less, drive something else. A car that uses electricity, alcohol, vegetable oil, etc.

It's the only effective thing you can do. Let the oil companies charge whatever they want, just stop buying their product.

[Keypinitreel1]

George Bush and all his lil buddies need their ***** whipped.


That is all. Carry on.

[alimech]

Thanks, Dubya!

I worked in the same building in the 80's with Bush's oil company (now defunct). What most of his supporters have forgotten..W was an oil man. Not a good or successful oil man, but one just the same. What do you think the war in Iraq (the THIRD LARGEST oil producer in the world!)is really about? Not WMD's, not freedom for Americans, not revenge for 911 (no Iraqi's involved).......oil, just oil.

[stezzer]

America, we British still see you as the Land Of The Free. Free to drive, free to protect yourselves, free to say whatever you want.

Fuel prices are the thin end of the wedge. If you let the liberals restrict your right to drive, they will soon restrict everything else.

If you don't believe me, look at the socialist UK.

[rudy654-2009]

"Fuel prices are the thin end of the wedge. If you let the liberals restrict your right to drive, they will soon restrict everything else."

That statement alone shows your not a Brit. The liberals restrict your right to drive? What the heck are you talking about? If you can't afford the gas, you can't drive, liberal, conservative, or nada!!

[afmca]

Thank you Mr. Bush ...

How to correct immediately...
1. take off the anti-competitive shackles. Let the warehouse and other stores lower their prices by using their other products to subsidize the lower cost. Once Big Oil stations start to lose business and close, they will be forced to lower their prices to the stations. All it will affect is Big Oil profits.
2. eliminate the zone pricing the oil companies use to artificially inflate the prices of gas and thus their profits
3. eliminate ALL subsidies and tax breaks IMMEDIATELY
4. ensure all future oil leases are pegged on a sliding scales according to the price of oil. As prices go up the money in the US treasury goes up also.

The politicians are all bought off. First is get rid of the Republicans and once they are gone - get rid of the Democrats and strat all over!

[stezzer]

rudy654

I'm a Brit, I live in Salford UK. Look it up.

A working class city, where working hard has got us nowhere.

[uhf62]

The price of gasoline in Canada at least in the part of the country where I am right now is at $1.12 a liter or $5.08 a gallon in CDN money that is about $3-4 dollars in US money.

[stezzer]

They tell us, here in the UK, there is "global warming". However, there have been three major Ice Ages.

Why did the earth warm up the other times? Because woolly mammoths wouldn't give up driving, because they insisted on budget flights?

Wake up folks, and smell the con.

We didn't, and now it's too late.

[shanev137]

Gas Prices Hit An All-Time High....yea, and it's not even hurricane season yet.

Get ready for the big bend over around August.

[uhf62]

In canada we feel your pain too,$5.08 a gallon where I live and it will go even higher as the summer driving season gets here.I expect it to hit $6.00 before too long here.

[rudy654-2009]

"I'm a Brit, I live in Salford UK. Look it up.
A working class city, where working hard has got us nowhere."

Uh huh, lovely. Do you ever get down as far as Chichester? Are do your liberals forbid it?

[stezzer]

rudy654

Chichester, too posh for us factory types. But a very nice place, if you like grass and cows.

:)))))

You looked up Salford yet? I can always invite you for tea and crumpets, and a look around.

[mdc76082]

I put it plain and simple. Nobody can ever get me to believe that the petro futures and currents are "market driven" and no man or being can control them. BS! The most powerful nation in the world (U.S. spells us) can control and dominate any market, any "thing" it da_mn well wants too. Looks like the "war" effort is paying off big dividends for those who are in the...oh "oil" industries. I bet we easily see $5.00/gal before Bush leaves. Oh well, better invest in Schwinn stock. It's gonna get better and better. Anybody wanna buy a 1/2 ton truck?

[jeepmanjr]

Been to Needles, CA lately? $3.99 per gal plus. Big oil should be ashamed. The US Gov should be ashamed for letting it continue to happen!!!

[stezzer]

rudy654

I've got to go now, I work shifts, and it's time for bed.

However, nice to converse with you. Good luck, and don't let those liberals wear you down.

Remember, my offer of tea and a look around Salford still stands.

[rhs648]

Although painful for many people, higher gas prices could provide some unintended benefits. Fewer cars on the road may result in safer highways, less congestion, less time spent commuting to and from work, and less pollution. Of course, this may mean making adjustments in our lifestyles. For example, it may require us to spend less for other things. Perhaps, the planned vacation has to be cancelled. Some of us will have to make choices and become more responsible consumers to make ends meet.