Gas Prices & 2008 Levels Reveal High National Average

By: Bill Waters
03/19/2010 12:30 PM ET

Gas prices & 2008 figures show a nationwide increase at the pump. The national average hit $2.799 per gallon this week. Fuel costs have now jumped 18.9 cents in the past month and are 87.9 cents higher than a year ago. In October 2008, the average price was $2.8215 per gallon.

The Energy Department and several industry experts expect the cost at the pump to top $3 this spring. Gasoline pricing tends to move higher in the spring as more drivers travel. This causes refiners to prepare for more expensive summer blends of fuel with fewer smog-causing emissions.

Prices for wholesale gas are also at their highest point since October 2008. Americans now spend about a $1 billion a day to keep their cars and trucks filled. This is an increase of nearly $300 million from a year ago.

The cost for natural gas fell nearly 4 percent this week after the Energy Information Administration said stockpiles shrank less than expected last week. Pump charges have dropped more than 30 percent since the beginning of the year. Despite a bitterly cold winter in much of the country that has driven strong demand, abundant supplies have kept a lid on prices.

Gasoline Usage and Pricing

The usage and pricing of gasoline results from factors such as crude oil values, demand, the strength of currencies, taxation, and the supply. Since fuels are traded worldwide, the trade pricing is similar. The price paid by consumers largely reflects national pricing policies.

U.S. Energy Information Administration (EIA)

The U.S. Energy Information Administration (EIA) collects, analyzes, and disseminates independent and impartial energy information. It uses it to promote sound policymaking and efficient markets. It also provides the public with an understanding of energy and its interaction with the economy and the environment.

EIA is the Nation’s premier source of energy information and, by law, its data, analyses, and forecasts are independent of approval by the United States Government. The Department of Energy Organization Act of 1977 established EIA as the primary Federal Government authority on energy statistics and analysis. It was first established in 1974 following the oil market disruption of 1973.