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By Robert Rapier on May 14, 2007 with no responses

AAA on Record Gas Prices

AAA says we hit a new gasoline price record:

Retail gasoline prices hit record high: AAA

NEW YORK (Reuters) – U.S. gasoline prices climbed to a record high average of $3.073 a gallon on Monday, breaking the previous peak hit after hurricanes knocked out refineries on the Gulf Coast in 2005, travel and auto group AAA said.

They round up the usual suspects, but forgot about record demand, without which we wouldn’t be in this situation:

Gasoline prices are up about 50 cents since March, according to the survey of 85,000 service stations, with energy experts blaming the spike on planned maintenance and operating problems at the nation’s oil refineries.

But, their bottom line is correct:

…almost all of the price pressure on gasoline can now be attributed to America’s continuing — and increasing — inability to supply enough refined gasoline to the marketplace,” AAA said in a statement earlier this month.

Considering the fact that gasoline imports have filled a large part of our demand for years, this inability to supply enough of our demand has been around for quite a while.