The Associated Press
Motorists are paying the highest prices for gas since October 2008. Retail gasoline prices rose on Thursday on an expected increase in demand, and as more expensive spring and summer blends of gasoline make their way to the pumps.
The nationwide average hit $2.799 per gallon, a penny higher than Wednesday, according to AAA, Wright Express and Oil Price Information Service.
Prices have now jumped 18.9 cents in the past month and are 87.9 cents higher than year-ago levels. On Oct. 23, 2008, prices averaged $2.8215 per gallon.
The Energy Department and many industry experts expect prices to top $3 this spring.
Gasoline prices tend to move higher in the spring as more drivers hit the road and refiners shut down units for maintenance, as they prepare to make more expensive summer blends of gasoline with fewer smog-causing emissions.
Wholesale gasoline prices also are at their highest point since October 2008.
Americans now spend about a $1 billion a day to keep their cars and trucks filled, an increase of nearly $300 million from a year ago.
With the average driver using about 50 gallons a month of fuel, the bill runs $140 per month and is expected to rise over the next several weeks.
The hit from gas prices comes as oil prices backed off their two-month highs on Thursday.
Crude prices fell 96 cents to $81.97 a barrel on the New York Mercantile Exchange. The contract rose $1.23 to settle at $82.93 on Wednesday, the highest settlement price since Jan. 6 when prices closed at $83.18 a barrel.
Oil has traded between about $70 and $85 for months as economic reports waver on the strength of the economic recovery in the U.S., the biggest consumer of oil.
“The question is, fundamentally right now in the world is $85 justified?” said Phil Flynn of PFGBest.
While oil and gasoline prices have been rising, natural gas prices have done the opposite.
Prices fell nearly 4 percent Thursday after the Energy Information Administration said natural gas stockpiles shrank less than expected last week. Prices have dropped more than 30 percent since the beginning of the year.
Dependability
Meanwhile, Porsche shot to the top of a closely watched study of long-term vehicle dependability, overtaking U.S. and Japanese rivals, J.D. Power and Associates said Thursday.
The German sports car brand took the No. 1 spot in the annual study, which gave it ninth place last year. Lincoln came in second, while Buick and Lexus tied for third. Mercury and Toyota rounded out the top five.
The annual study measures problems experienced by the original owners of vehicles after three years. In last year’s study, Buick and Jaguar tied for fewest problems, but both brands lost ground to rivals this year.
U.S. brands had a particularly strong showing this year, reflecting concerted efforts in Detroit to catch up to foreign rivals who have traditionally dominated the quality study, said David Sargent, J.D. Power’s vice president for vehicle research.
Top-five finishers Lincoln and Mercury are owned by Ford Motor Co., while Buick is owned by General Motors Co. The Cadillac DTS full-sized sedan, which is sold by GM, was named highest-quality car overall.
“The domestics are moving a little bit faster catching up,” Sargent said.
Toyota, whose reputation has come under scrutiny in the face of massive recalls, fell two spots from its third-place standing last year.
While average vehicle quality across the industry improved from last year’s survey, Toyota’s quality score fell slightly.
However, the Japanese nameplate still swept four segment awards, more than any other brand, while its luxury Lexus brand took one segment award. Japanese rival Honda took three awards, while Ford Motor Co.’s Lincoln brand took two.
Business
Gas prices highest since 2008
Higher demand cited
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