Unrest in Libya Causes Pain at the Pump in Essex

The impact of unrest in Libya can be felt halfway around the world in Essex. Uncertainty in the 12^th largest oil producer in the world sent gas prices soaring again.

The national average price of regular grade gasoline reached a 28-month high of $3.35 Sunday, up 18 cents from a week ago and 65 cents above year-ago prices, according to the latest survey by AAA.

In Maryland, the average price for regular unleaded as of Sunday was $3.31 a gallon, compared to $3.11 a week ago and $2.67 a year ago, according to AAA.

Prices are also just 82 cents shy of the all-time national high average of $4.11 a gallon set in July 2008. The increase is due mainly to the jump in crude oil, which surged to $103.41 on Thursday—heights not reached since September 2008.

Prices only eased Friday following news that Saudi Arabia increased its oil production by 700,000 barrels a day to more than 9 million barrels a day to compensate for the halted shipments out of Libya.

“This week has been a ‘crude awakening’ for motorists who continue to endure pain at the pump,” said AAA spokesman Ragina C. Averella in a statement.  “The national average gas price rose 13 cents or 4 percent last week alone, to new 28-month highs, a direct result of soaring crude oil prices due to unrest in Libya. 

"Occurring just ahead of the peak driving season, recent increases at the pumps could have far-reaching effects if they continue for the long-term, crimping demand and halting economic recovery.”

AAA reports that it’s still too early to tell how high crude oil will rise or for how long, but industry analysts tend to agree that gas prices will reach $3.50 to $3.75 a gallon by early spring, which is just a few short weeks away. 

Here are the cheapest gas prices according to MarylandGasPrices.com:

Royal Farms