Gasoline Price Reaches New Record

The pump price is up 52 cents a gallon from a year ago, based on the EIA’s weekly survey of 800 service stations. The gasoline price is the highest on record and the second largest weekly price change since the EIA began tracking weekly fuel prices a decade ago.

The price for gasoline has risen 14 cents over the last month due to high crude oil prices and strong demand for gasoline during the busy summer driving season. Gasoline prices are already above the peak $1.50 a gallon average the EIA has forecast for the summer.

The Gulf Coast states had the cheapest fuel, up 1.1 cents a gallon to $1.476 for conventional gasoline, while reformulated gasoline (RFG) actually fell 1.2 cents to $1.472 in the region.

Midwest drivers continued to pay the most for fuel, with the price for conventional gasoline up 15 cents to $1.796 a gallon and cleaner burning RFG up 13.7 cents to $1.972. The American Automobile Association reported that gas prices have breached the $2 dollar a gallon mark in areas of Illinois, forcing some stations to price their signs according to half gallons as a quick fix for not being able to price gas above $2 on their pump signs.

U.S. government officials met with oil companies on Monday to find out why fuel prices in the region are the highest in the nation, even though supplies seem adequate.

After its meeting with oil firms, the Environmental Protection Agency said the refiners offered "no good explanation" on why fuel costs were much higher in the Midwest.

"Our analysis shows adequate supplies, and the cost of producing the fuel isn't anywhere near the prices we're seeing at the pump," Robert Perciasepe, an assistant EPA administrator, told reporters after the meeting.

The agency, however, stopped short of accusing the firms of gouging consumers at the pump.