Gasoline Prices Likely to Rise, Lundberg Says

Gasoline prices, which have dropped steadily for the past three months to their lowest level since 1981, are likely to climb to reflect an increase in wholesale prices, an oil industry analyst said Sunday.

Although pump prices for all grades of gas dropped 0.7 cents in the past two weeks, wholesale prices increased 0.3 cents during the same period, analyst Dan Lundberg said. Dealers are sacrificing nearly a penny in margin for every gallon they sell because of the disparity in retail and wholesale prices, he said.

“Dealers move very swiftly to respond to wholesale increases,” Lundberg said. “There’s a great likelihood of at least a penny increase in the near future, as they (dealers) try to compensate for what they’ve lost in this period.”

The nationwide average price for a gallon of regular leaded self-serve during the survey period Jan. 25 to Feb. 8 was $1.01. Regular unleaded self-serve was selling for $1.08 and premium unleaded self-serve for $1.23, Lundberg said.