Gas Prices Reach Another High, Yet Driving Costs Remain Steady

AAA says prices at the pump keep rising although crude has eased from its record high. Also, lower insurance premiums, taxes and costs for other services offset rising pump prices.

CNNMoney.com.

Published March 21, 2005

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NEW YORK – Gasoline prices continued to charge into uncharted territory, hitting another record high Monday despite crude falling from all-time peaks, according to an AAA survey.

 

The average price of a gallon of regular unleaded gas rose to $2.07, according to AAA, the largest U.S. motorist organization formerly known as the American Automobile Association. Gasoline prices have followed the rise in crude prices. Friday, the average price of a gallon of regular was $2.06, also a new record, as was the $2.05 a gallon reached Tuesday.

 

The previous high reached before the latest run-up was $2.05, notched May 26, 2004, according to AAA. While Monday's price set a new record at the pump, when adjusted for inflation the highest price for gasoline would be the equivalent of more than $3 a gallon in the spring of 1981, Reuters said, citing the Department of Energy.

 

Also putting gas prices in perspective is a separate AAA report estimating that it will cost an average of 56.1 cents per mile – about $8,410 per year – to own an operate a new passenger car in 2005, compared to $56.2 cents per mile - $8,431 annually – in 2004.

 

The group said offsetting higher gasoline costs were reductions in the annual average cost of insurance, licensing, registration and taxes, as well as tires and maintenance. The cost of gasoline is estimated to average 8.5 cents a mile or $1,285 this year, AAA said, versus 6.5 cents a mile or $975 last year.
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