Gas prices rise to new national record

NEW YORK – The cost of filling up the family car jumped to a record high Tuesday, adding to the challenges consumers already face with falling home values and rising food prices.

Gas prices at the pump rose overnight to a record national average of $3.2272 a gallon, according to AAA and the Oil Price Information Service. That’s a tad higher than the previous record of $3.2265, set last May.


A year ago, rising demand and a string of refinery outages had raised concerns about supplies. Now, the soaring price of crude oil is the culprit, propelling gas higher even though supplies are at 15-year highs.

On Tuesday, light sweet crude for April delivery surged to a new record of $109.72 on the New York Mercantile Exchange before falling after the International Energy Agency cut its forecasts for crude consumption this year. In midday trading, crude futures fluctuated, rising 23 cents to $108.13 a barrel but alternating between gains and losses.

Where oil goes from here is anybody’s guess. Many analysts expect prices to moderate, while others predict oil could keep rising to $120 a barrel, or higher. And with demand for gas expected to rise as warm weather arrives, analysts say pump prices will likely spike as high as $3.50 to $3.75 a gallon, regardless of what happens with oil prices.

That doesn’t sit well with some consumers.

AP