March 10 (UPI) — U.S. retail gasoline prices are continuing a slow march higher because of changes at the nation’s refineries, but the price at the pump remains well below year-ago levels, data from Friday show.
Motor club AAA put the national average retail price at $3.47 per gallon for Friday, an increase of about 8 cents per gallon from this time last week.
Much of the increase is attributed to the switch to the summer grade of gasoline, a switch that’s mandated for refineries by March 1.
“Gasoline evaporates more easily in warm weather, releasing more volatile organic compounds that contribute to health problems and to ground-level ozone and smog,” the U.S. Energy Department explained. “To cut down on pollution, the U.S. Environmental Protection Agency requires petroleum refiners to reduce the vapor pressure of gasoline during the summer.”
That takes additional processes at the nation’s refinery and the added cost is passed down to the consumer level. The trickle down to the consumer was a slow process, with U.S. Midwest spikes showing up earlier than elsewhere in the nation, but all states are now seeing the increase.
Mississippi, which has the lowest price in the nation at $3.01, has seen a week-on-week jump of around 6.5 cents per gallon. California, which because of elevated state taxes usually has the highest price in the Lower 48, saw a similar price increase from week-ago levels.
No state in the nation, however, has an average price near year-ago levels. AAA said the national average this time last year was $4.32 per gallon.
The federal government, meanwhile, increased its forecast for domestic gasoline demand by 2%, pointing to a decline in average fuel efficiency.
Prices should nevertheless remain below year-ago levels, though a $4 national average is possible this summer because of travel demand.
The government, however, expects retail gas prices will average $3.39 per gallon this year, a good 60 cents lower than last year, and fall again to $3.10 next year.