Average price of gasoline jumps 21 cents in past two weeks

According to the Lundberg Survey, the average price of regular gasoline has jumped 21 cents in the past two weeks to $2.54.

Lundberg Survey is an independent market research company that specializes in the US petroleum marketing and other related industries.

According to Trilby Lundberg, president of Lundberg Survey, gas prices hiked for the third time since June. However, the price is still 97 cents per gallon less than a year ago.

She said that due to high price set by refineries, refiners and retailers are starting to lose attractive marginal returns and this is expected to continue as summer gasoline season approaches.

Retailers had experienced margin decline at 0.21 cents per gallon to a mere 10.48 cents. The lowest was in the week of February 20.

Numerous union labor strikes in US refineries are reason behind price hike. An explosion at ExxonMobil’s Torrance refinery is the biggest contributor to price hike.

The highest price across the lower 48 states was recorded in Los Angeles with $3.48 per gallon. Pump prices jumped 35 cents on average.

In Southern California, refineries are scheduled to offer the higher cost ‘summer blend’ gasoline product, which is expected to roll out on April 1.

Baton Rouge, Louisiana recorded the lowest price with $2.16 per gallon. Long Island, New York recorded an average price at $2.59 per gallon.

In a report Lundberg wrote, “Assuming crude oil prices do not change appreciably, we can expect a few more pennies per gallon in some parts of the country. At this point, it is reasonable to expect that any further wholesale price increases will be passed rapidly to the street”.