The current Lundberg survey shows that American consumers are confronting higher gasoline prices today as wholesalers pass the increase in oil prices to them.
According to the widely tracked survey, the latest average cost of self-serve, regular gasoline throughout the country moved higher compared to more than a month ago, from $3.41 per gallon to $3.51 per gallon.
The survey shows that the recent increase was the first time in the past 14 weeks. The survey is performed in 2,500 gasoline stations nationwide and is released either every other week or every third week of each month.
The cost of gas had declined by more than 14 percent from its sharp increase of $3.967 per gallon seen on the 6th of April. It had then increased over the past week. The highest recorded gasoline price ever of $4.112 per gallon
was seen four years ago on the 11th of July, 2008.
Trilby Lundberg, who performs the poll, said in an interview that the increase in the gasoline prices today occurred after crude stopped declining. Consequently, that led wholesalers to start passing the higher per barrel price of crude to consumers, a move that was not observed in the earlier parts of the present month.
The crude price per barrel which, according to Lundberg, is the top factor influencing the current gasoline price more than any other, ended the recent trading week at $90.13. That rate had reached a peak of $110.55 in March 1 of this year.
West Texas Intermediate (WTI), the U.S. benchmark crude, finished the week higher following the data showing a weaker growth rate in the United States, signaling the possibility of more financial improvement when the Fed convenes this week.
By: Chris Termeer