CAMARILLO, Calif. -- Even if crude oil prices drop slightly in coming weeks, U.S. retail gasoline prices have nowhere to go but up, according to the most recentLundberg Survey of approximately 7,000 U.S. gas stations.
In the past two weeks, regular grade increased 9.44 cents per gallon to $3.1955. It would have increased far more if not for another big hit to refiner margin and a status quo for slightly depressed retail margin.
Assuming no huge change in crude, another 20 to 30 cents at the pump is just around the corner. [image-nocss] Refining margin alone, depressed since late last Spring, is enough to do that. Daylight Saving Time has launched Spring demand growth that will use up the present gasoline surplus. Add the additional ethanol required this year by federal government order, with its currently rising prices and its mileage penalty effectively adding to gasoline demand, and Spring 2008 can be expected to grab everyone's negative attention.
Everyone's attention, that is, except OPEC's and some of the world's under-producers, who are happy enough riding the price wave, and U.S. federal energy policy makers, who are happy claiming that the mandated renewable fuels program is part of the consumer fuel price solution.
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