Retail Gasoline Prices in the US Up for the First Time Over Past 10 Weeks image

For the first time in 10 weeks the average price for a gallon of gasoline in the US increased more than 8 cents, on higher retail wholesale costs.

On July 26th, gasoline cost reached an average of $3.6746 per gallon, an increased from $3.5908 on July 12th, according to a survey made on 2,500 retail stations. According to Trilby Lundberg, editor of the Lundberg survey, this increase is not related to the crude oil prices, but with the rise in in the refined crude costs.

“Several days ago, refiners were already paying more for crude and they translated those higher crude prices into higher wholesale prices for gasoline that they charge,” Lundberg said. “This means that several days ago, retailers had already received price hikes in what they pay to refiners. Retailers then had to pass that increase to motorists in order to be financially viable.”

Considering the 48 US states, the lowest gasoline price was found in Charleston, South Carolina, at $3.34 per gallon, an increase from $3.22 two weeks ago, while Chicago has the highest price at $4.10 a gallon, up from $4.04 two weeks earlier. At the end of last week crude oil dropped 0.7% to $104.70 per barrel, due to concerns about sluggish demand from China, which is the second largest oil consumer in the world.

Source: Reuters