Gas Prices Continue Push Toward $4 a Gallon

Gas prices continue to push toward $4 a gallon as prices continue to be on the rise, according to the latest survey by AAA.

The national average price of regular grade gasoline was $3.83 Sunday, up 7 cents from a week ago, 27 cents higher than month-ago prices, and 96 cents higher than a year ago. Nationally, gas prices have jumped 75 cents since January, which is 29 cents below the all-time high of $4.11 a gallon set in July 2008.

In Maryland, the average price of regular on Sunday was $3.82 a gallon, up 7 cents from a week ago and 98 cents from a week ago.

According to AAA, crude oil hit its highest levels in more than two and a half years early last week, trading above $113 a barrel, before dropping to less than $106 a barrel Tuesday. Despite continued unrest in the Middle East and North Africa, analysts believe this week’s price dip could be a delayed reaction to softer demand and speculators sensing the end of the bullish run. In all, crude oil prices dipped 3 percent last week to close at $109.66 Friday. 

“Gas prices continue to inch ever-closer to the $4 per gallon mark, however, under current national and global economic conditions we don’t think that threshold (or beyond) could be sustained for long, if at all,” said AAA Mid-Atlantic spokesman Ragina C. Averella in a statement. “Should prices continue their upward tick, demand would undoubtedly be affected, theoretically reversing the price of crude oil and gasoline. 

"With Memorial Day weekend (the unofficial start of summer and typically when we see season-high gas prices) just six weeks away, motorists and analysts alike will continue to eyeball the direction of crude oil markets and gas prices looking for any signs of an about-face.”

The U.S. Energy Information Administration revised its Short-Term Energy and Summer Fuels Outlook, which includes a detailed look at the forecast for transportation fuels during the upcoming summer (April through September). According to the outlook, regular-grade gasoline retail prices, which averaged $2.76 per gallon last summer, are projected to average $3.86 per gallon during the 2011 driving season.

The monthly average gasoline price is expected to peak at about $3.91 per gallon by mid-summer. Diesel fuel prices, which averaged $2.98 per gallon last summer, are projected to average $4.09 per gallon this summer.

Here are the cheapest gas prices in the Essex-Middle River area, according to MarylandGasPrices.com.