AAA: Gas prices jump

With crude oil prices recently hitting a high for 2010, D.C.-area drivers are feeling more pain at the pump in the form of higher gas prices, AAA Mid-Atlantic said Sunday. The average price for a gallon of gas rose to $2.96 in the metro area, according to AAA’s Dec. 5 weekend gas watch, up from $2.88 a week ago and $2.64 a year ago.

The rise and fall of gas prices are tied to the price of crude oil, which hit $89.19 a barrel on Friday — the highest level this year and the highest level since October 2008. A weak U.S. dollar and increased demand for heating oil helped push the price for crude oil to its highest level in 25 months, AAA said.

Recent positive news on the retail and home-sales front was also a major factor in the increase, as upbeat economic data can portend an increase in energy demand and consumption, said Lon Anderson, a spokesman for AAA Mid-Atlantic.

In that vein, the collapse of the U.S. economy preceded a marked downturn in gasoline prices. Two years ago, oil was trading at around $40 a barrel and the average D.C. metropolitan area gas price was $1.77 a gallon.

The higher prices are coming just as many will be out doing their holiday shopping, noted John Townsend, manager of public and government affairs for AAA Mid-Atlantic.

“With the holiday shopping season in full swing, motorists are undoubtedly unnerved by the recent increase in pump prices,” he said. “Increased gas prices, especially during the holiday season, cause motorists concern when digging deeper into their pockets to fill up their tanks, while at the same time beginning to plan holiday travel and shopping expenses.”

Nationally, the average price of gasoline was $2.90 on Friday, up 10 cents in the past month and 27 cents higher than prices a year ago, according to AAA.

“We’re knocking on $3 a gallon right now, and we haven’t been there for a long time,” said Anderson.

Meteoric rises in crude oil prices helped push gas prices above $4 a gallon during the summer of 2008.

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