Rhode Island news | projo.com | The Providence Journal

« Mom Hasselbeck and baby survive labor just fine / Video | Today | Photo: West Warwick man arraigned in fatal stabbing »

November 13, 2007

Gas prices pass $3 per gallon in Ocean State

Gasoline prices in Rhode Island have jumped another nine cents, passing the $3.00 per gallon mark, according to AAA Southern New England.

AAA’s November 13 survey found self-serve, regular unleaded averaging $3.039 per gallon. The price has climbed 36 cents in the past month, AAA says.

The jump is driven by increased demand for oil in the United States and across the world, according to Robert Murray, senior vice president of corporate affairs for AAA Southern New England. Crude oil recently approached $100 per barrel before dropping back to about $93, he noted.

In addition, Murray said, the country's capacity for refining oil is "maxed out."

"Even if we got more oil, we couldn't refine it," he said.

High prices are apparently starting to affect consumer driving habits and could have an impact on Thanksgiving travel next week and the upcoming Christmas shopping season, he said.

"Not everyone can afford $40 once or twice a week (to fill up). At that level, you start to impact people in the poor category, the working poor, elderly on fixed income, younger people without substantial income," Murray said. "It has to impact on those people because they simply don't have the money."

In a press release announcing the latest price survey, AAA referred to a study showing that Americans are spending twice as much of their income at the gas pumps as they did five years ago.

The study, released by Oil Price Information Service (OPIS), which gathers pricing information for AAA, shows that nationally, Americans spend 3.8 percent of every earned dollar to fill their gasoline tanks.

The amount was 1.9 percent of income in 2002.

If there's any consolation for Rhode Islanders, it's that it could be worse. Rhode Islanders are paying seven cents less than the national average of $3.109 per gallon.

Where will prices go from here? Some analysts believe prices will increase 10 to 20 cents per gallon before catching to the recent spike in oil prices, according to Murray. Some analysts predict that consumers will be paying $4 per gallon this spring, he said.

One thing is for sure, he said. As long as demand continues to increase so will prices.

Posted by Jack Perry at 11:56 AM | Permalink

Comments

I think that's a catastrophy!!!! Does that mean I won't be able to travel to California for Christmas?

Michael Columbus | November 13, 2007 1:29 PM link

Absolutely ridiculous that this government refuses to step in and help the american public. This administration has no idea what the effect of high gas prices will do to the economy. A total joke!

joe | November 13, 2007 2:11 PM link

Gas prices keep increasing and disposable income keeps disappearing. If I were a big retailer I would be concerned that the holiday shopping dollars were going into people's gas tanks and not into shopping carts. $4 a gallon will severely affect people's spending habits and limit any discretionary spending.

Geo | November 13, 2007 4:05 PM link

Historically high gasoline and heating oil prices are crippling RI consumers. It's hard enough to support one's family during inflationary times without having to bear the added burden of such egregious petroleum prices.

Recession, this Holiday Season, is unavoidable as consumers are obliged to pay disproportionate percentages income to get to work and keep their families warm.

ralph daniels | November 13, 2007 5:05 PM link

I just sold my Chevy Blazer, and bought a used SAAB 9-5 Wagon.

My combined MPG has changed from 14.3-MPG to 26.8-MPG. I felt guilty every time I filled up what had become knows as "the beast".

Now I feel exhilarated, albeit liberated every day I can pass the pumps!

Chris | November 13, 2007 5:39 PM link

November 13, 2007

Gas prices pass $3 per gallon in Ocean State

Comments

Post a comment