Money Matters

Record gas prices may curb summer demand

By Chris Woodyard, USA TODAY

That price for regular gasoline is up 4.2 cents a gallon from last week and 58 cents from a year ago.

Guy Caruso, head of the federal Energy Information Administration, also told reporters in Washington that gas prices have risen to a point where motorists are starting to cut their demand and he predicted prices may deter them from taking to the highways this summer in their usual numbers. If so, it would be the first decline in summer fuel consumption since 1991.

EIS expects prices to peak around $3.60 a gallon this spring and says $4 gas is unlikely on a national basis.

California recorded the highest regional price in the survey at $3.685 a gallon, up nearly 8 cents from last week, EIA reported. The lowest was in New England at $3.229 a gallon, up only 2 cents from last week.

Diesel fuel averaged $3.955 Monday, down 0.9 cents a gallon from a week ago but still $1.115 a gallon more than the price this time last year, a 39% increase.

Oil prices rose $2.86 to close at $109.09 a barrel in futures trading on continuing weakening of the dollar and little prospect for more supply. OPEC Secretary-General Abdullah al-Badri said last weekend that the oil cartel believes global oil output is sufficient.

Contributing: Reuters, The Associated Press