Why US pump prices are on the rise, again

Christian Science Monitor

04/11/07

Memorial Day is almost seven weeks away, but consumers are already paying prices at the pump usually associated with the peak of summer. In California, motorists are forking over an average of $3.25 a gallon. Nationally, the average price has hit $2.87 a gallon. There are even reports of isolated shortages, particularly in the Southeast. Refiners’ profit margins on gasoline are the biggest they’ve been since hurricane Katrina. According to energy specialists, the bad news at the pump stems from multiple problems at refineries: Fires and other outages — some even attributed to animals — have resulted in curtailed production. ‘It just keeps piling on and piling on,’ says John Kilduff, a senior vice president at Fimat USA, an energy trading company in New York. ‘It looks like the national average will hit $3 a gallon by Memorial Day’...

http://www.csmonitor.com/2007/0411/p01s04-usec.html


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