In Nearby Arizona, Gas Prices Also Recently Rose For About 14 Week In A Row

Category: Finance.

Gasoline prices have been steadily climbing for the past few months- though the costs around the nation have dropped slightly in the past week- - and are threatening to become the most important issue of the summer. A large portion of the gas- buying public are blaming the' Big Oil' companies, who are reaping huge profits from the high gas prices.

The nationwide average price for a gallon of unleaded regular gasoline now stands at just above 3 dollars, up a full 25 cents from this time last year. However, in an industry as complicated as the oil/ gas business it is difficult to locate one determinative factor to point the finger at. Gas consumers all around the country are justifiably worried about the rising prices. Commentators have run the gamut, from lambasting industry executives, to pointedly noting the lack of domestic oil refining capacity, to admitting that the supply of oil may be running short- - although those who posit the latter are certainly in the minority at present. Recently in Texas the average price of retail gasoline climbed for a 14th straight week. Auto club spokeswoman Rose Rougeau said that Texas cities Amarillo and El Paso were at all- time highs, while prices edged lower in eight other cities. A weekly AAA- Texas gas price survey showed that price trends were mixed, with prices reaching record highs in some areas but going lower in others.

Rougeau posited that strong consumer demand, decreased domestic output because of refinery issues and lower gas imports apparently are still combining to keep prices high. According to an AAA- Arizona survey, the statewide average for a gallon of self- serve unleaded regular was 3 dollars and 9 cents per gallon. In nearby Arizona, gas prices also recently rose for about 14 week in a row. That's one cent below last summer's costliest price, and creeping closer to the all- time record of 3 dollars and 13 cent per gallon set in September 200 On the theories of why prices keep going higher, the lack of oil refining capacity seems to be the most repeated response. On May 8, the Senate Commerce Committee voted to increase fuel economy standards to an average of 35 miles per gallon by year 2020 for cars and light trucks, with standards rising by 4 percent annually until 203 According to some industry commentators, Congress has depressed the construction of new oil refining capacity through proposed legislation that penalizes refiners when prices rise, that gives extensive and expensive permit requirements for construction of new refineries and augmenting existing sites, and that allows for a degree of tort risk. Some industry experts blame Congress, positing that the legislators are preoccupied with forcing car companies to meet unrealistic targets for fuel efficiency, while failing to address the oil refining problem.

Construction of more refineries would certainly ease the gasoline supply problem, but because they have been proven to be so damaging to the surrounding environment, it is very problematic to find a community that will endorse a new refinery. Under the logic of' NIMBY' (Not In My Backyard) , people like to purchase gasoline at low prices, but they don' t want a refinery close to home.