The American motoring public once again fears the three dollar mark in the price of gasoline. This fear is made even more believable when the price of gasoline in California reaches the three dollar mark. But in response to this, the American Automobile Association (or the AAA) announced that the more than $3 per gallon price of gasoline in the West Coast is unlikely to spread all over the country.
According to the not-for-profit automobile lobby group, the average price of gasoline in the country is at $2.545 per gallon although the average in California is much higher for gasoline now is traded at $3.121 per gallon. The AAA stated that the reason for the high price of gasoline in the West Coast is due to the fact that the region has a limited number of oil refineries. Other reasons that AAA cited are the strict air quality standards in the region and the relative isolation of the West Coast from fuel supplies in the country.
While the AAA said that the price of gasoline outside of the West Coast will not reach the three dollar mark, the organization warned that the price of gasoline will continue to increase in the next few months. AAA believes that apart from the West Coast, the country will experience a gradual increase in the price of gasoline as the demand for fuel increases in the season. They also believe that the price of gasoline will peak well below the dreaded three dollar mark.
For those motorists who are thinking that the price of gasoline in the country will once again reach $3 per gallon in the spring, AAA cited the reasons for the three dollar mark in the past two years. The AAA stated that in the years 2005 and 2006, two events played a major role in the increased gas price. In 2005, AAA cited the Hurricane Katrina which has inflicted damage on the energy infrastructure in the country.
The ravaging hurricane made oil refineries supply less fuel to the market which make the price sky rocket. In 2006, Israel's invasion of Lebanon played a key role in the price of gas in the U.S. The result of the invasion is a threat to the oil shipments going out of the Middle East.
AAA cited that the reasons present in the past couple of years for the sharp increase in the price of gasoline is not present this year. Although it is expected that the price of gasoline will increase due to the increase in the demand for gasoline, AAA believes that there is no reason to believer that the three dollar mark will once again be thrust into the public this year.
The organization which provides a wide range of information for motorists, as wide as the selection of aftermarket parts from , also stated the average of gas prices for the state with the highest price of gasoline. According to the AAA, California has the highest statewide average gas price at $3.121 per gallon. California is followed by Hawaii with an average of $2.906 per gallon. The third state with the highest gas price average is Oregon where gas is sold at an average of $2.782 per gallon.
