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April 28, 2008

Gasoline sets another record high in RI

The average price of gasoline in Rhode Island set a new record again today. Regular, self-serve gasoline averaged $3.599 a gallon, up 11 cents from last week, according to the state’s Office of Energy Resources.

The agency calculates an average price every Monday, based on a survey of local dealers.
Gasoline has risen sharply in April, increasing 39 cents a gallon since March 31.
The average price is 70 cents a gallon higher than it was a year ago.

“I've got to think we're close to the end on increases,” said Michael Lynch, president of Strategic Energy & Economic Research Inc. in Cambridge, Mass., as quoted by the Associated Press.

However, Lynch thinks prices could rise another 10 cents to 15 cents before they reach that peak and begin falling.

Analysts say that one reason that gasoline prices are rising is the annual switchover to summer-blend gasoline. Refineries must make about 40 different types of gasoline in the summer, because of various pollution regulations adopted by different states.
Summer-blend gasoline is engineered to evaporate less easily, and is more costly to make.

The most important step that the United States can take to lower fuel prices is to find ways to speed the adoption of alternative fuels, said Sen. Jack Reed, during an online chat this afternoon on projo.com.

“We have tried to propose some short-run approaches including urging the administration to avoid further acquisitions of oil for the Strategic Petroleum Reserve,” Reed said.

“In addition, we are beginning to focus on the commodities trading market to ensure that there is no illegal speculation in oil products.”

“These measures, at best, will only bring modest relief. The real question is how quickly we can shift to alternate fuels throughout the economy. This will be one of the key challenges of the next several years.”

Posted by Tim Barmann  at 3:21 PM | Permalink

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