Gasoline Prices Continue to Rise

The average price of a gallon of regular gasoline reaches $3.72.

February 29, 2012

WASHINGTON - Nationwide, pump prices have risen to $3.72 on average, according to the U.S. Energy Information Administration, ABC News reports. That€™s 13 cents higher than a week ago, and 19 cents more than two weeks ago, according to the U.S. Department of Energy (DOE). The national average is the highest price ever recorded in February since the DOE has been keeping gasoline statistics starting in 1990.

Andrew Lipow, president of Lipow Oil Associates, points to the Iranian tensions upping crude oil prices, disruptions in supplies from Nigeria and the Sudan, and a lower refining capacity because of refinery closures in the United States and Europe.

While higher gasoline prices might lead some to believe that gasoline retailers are racking in the money, the opposite is true. "I wish," said Jay Ricker, who operates 50 stations around Indianapolis. Rising pump prices often mean stations pass less of the cost along to customers in order to stay competitive.

On a daily basis, Ricker updates his gasoline inventory. "My cost per gallon, as of this morning [Feb. 27]," he said, "was $3.63, including freight and tax. We're selling it for $3.67, so we're making just three cents a gallon." But credit card swipe fees can take away even that margin. "If they pay by credit card, I'm losing money right away," said Ricker.

Station owners also have to battle increases in gasoline theft when pump prices soar. Today€™s gasoline theft is different than what owners dealt with five years ago, said NACS spokesman Jeff Lenard. "Then it was kids stealing $5 worth of gas. Or it was adults stealing a full tank so they could 'stick it to the man.€™"

But today, with most pumps pre-pay, thieves siphon gasoline directly from underground storage tanks. A recent theft in Florida involved thieves removing of the tank€™s manhole cover and parking a vehicle directly above it to take out barrels of fuel.

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