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Gas prices surge to record
Lundberg survey shows average price for regular at $2.31 a gallon, 2 cents above prior mark.
July 11, 2005: 8:36 AM EDT

ATLANTA (CNN) - Gas prices surged nearly a dime over the past two weeks to an all-time high of $2.31 per gallon of self-serve regular, a national survey said Sunday.

That beats the previous record, set April 8, by about 2 cents, said Trilby Lundberg, publisher of the Lundberg Survey.

"Crude oil prices have been working their way through to the pump, and gasoline demand growth in June -- over June 2004 -- fueled the price hikes," Lundberg said about the survey, which was taken July 8 and June 24.

Despite the higher prices, gasoline demand was 2.5 percent higher in June than it was a year ago, she said, citing the strong U.S. economy.

Other factors affecting the price trend include this year's more stringent limits on sulfur and the higher cost of methyl tertiary-butyl ether, a gasoline additive commonly required in the country's smoggiest cities.

Lundberg predicted that continuing strong demand would likely result in slightly higher prices at the pump over the near term, assuming crude prices remain around $60 to $61 per barrel.

"Or it could be a lot more, if Hurricane Dennis has his way or wreaks substantial damage to production, transportation and storage facilities" in the Gulf, she said.

The all-time peak adjusted for inflation occurred in March 1981, when prices were about 70 cents-per-gallon higher, Lundberg said.

The survey found the country's lowest average price was in Charleston, S.C., where a gallon of self-serve regular cost $2.09; the highest was in San Diego, where a gallon cost $2.55, Lundberg said.

Here are some prices in other cities: Atlanta: $2.26; Salt Lake City: $2.21; Miami: $2.30; Detroit: $2.34; Boston: $2.34; San Francisco: $2.53; Houston: $2.15.

Click here for our special report: Oil Crunch 2005.  Top of page

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