White House: Gas costs to rise further

WASHINGTON (Reuters) – White House economic adviser Ben Bernanke said on Thursday U.S. gasoline prices will likely rise further because of system disruptions following Hurricane Katrina, but will drop when supply lines return to normal.

”
“I think the good news is that this is not likely to be a permanent situation as these refineries and these transportation networks are brought back on line,” he said.
There is a supply problem; there’s been a reduction in the amount of gasoline available. People still want to drive, so the price is going to go up,” Bernanke, chairman of President George W. Bush’s Council of Economic Advisers, said on C-SPAN television.

Reuters