AP reports that the Energy Department expects retail gas prices to peak near $3.50 a gallon later in the spring, though that forecast is expected to be revised tomorrow
AP reports that the Energy Department expects retail gas prices to peak near $3.50 a gallon later in the spring, though that forecast is expected to be revised tomorrow.
Many analysts see prices inching up closer to $4 a gallon. In oil trading Monday, May futures picked up $2.76 to $108.99 a barrel on the Nymex as traders shrugged off a slightly weaker dollar and bet that future Fed rate cuts will weaken the greenback, according to AP.
A weak dollar attracts investors to hard commodities such as oil, which are seen as a hedge against inflation, the AP said. Also, a falling dollar makes oil cheaper to investors overseas.
The average price of a gallon of no-lead gas inched up at the local as well as national levels, AAA Mid-Atlantic announced today.
In the five-county Philadelphia area, the average - $3.25 - is the highest for the year. In South Jersey, the average was at $3.04, matching the year's highest average price.
At the national level, a 4-cent increase drove the price to $3.34.
Diesel fuel was averaging $4.25 in the Philadelphia area, down 5 cents from the high for the year. In South Jersey, the average of $3.98 showed a retreat from the year's high of $4.03.
At the national level, diesel was averaging $4.01, down 3 cents from the year's high.
