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Gas prices start week with new record
Motorists pay, an average, $2.133 for a gallon of gasoline, according to an AAA survey.
March 28, 2005: 3:06 PM EST

NEW YORK (CNN/Money) - Gasoline prices kicked off the workweek with another record setting day despite an ease in the cost of crude, which has fallen more than three dollars a barrel since the middle of March.

The average price of a gallon of regular unleaded gas rose to $2.133, according to AAA, the largest U.S. motorist organization formerly known as the American Automobile Association.

On average, gas prices are the highest in Hawaii at $2.443 for a gallon of regular unleaded; and they are the lowest in New Jersey at $1.956 for a gallon of regular. New Jersey was the only state in the union where motorists could top off the tank for under $2 a gallon.

The previous high reached before the latest run-up was $2.054, notched May 26, 2004, according to AAA.

Although long term price supports for crude remain intact -- including strong demand from the United States, rising demand from China and lower non-OPEC production, some limited short-term relief may be in sight.

While retail prices are still working through last week's spike -- partly caused by a deadly explosion at a Texas refinery and a report showing a steep drop in gasoline stocks -- gasoline futures on the New York Mercantile Exchange traded two cents lower Monday, down from a record high last week.

Although gasoline prices are related to the price of oil, they are not directly correlated as it takes time to refine crude oil into gas and other factors, such as supply and demand, influence the price of gas.

While Friday'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.

For the latest in oil prices, click here.  Top of page

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