Prices at pump lowest in weeks

[notiCIas]

Prices at pump lowest in weeks

US gas prices fall to their lowest level in seven weeks, after recent drop in crude oil costs.

May 16, 2005: 6:58 PM EDT


WASHINGTON (Reuters) - U.S. retail gasoline prices fell to their lowest level in seven weeks, mirroring a drop in crude oil costs, the government said Monday.

The national price for regular unleaded gasoline declined 2.3 cents over the past week to $2.16 a gallon, up 15 cents from a year ago, according to a weekly survey of service stations by the U.S. Energy Information Administration.

Though pump prices are falling, President Bush on Monday expressed concern about the impact of still high motor fuel costs.

"Today's gasoline prices and diesel prices are making it harder for our families to meet their budgets," Bush said in a speech at a biodiesel refinery in West Point, Virginia.

Pump prices are falling as crude oil costs drop. U.S. crude oil prices peaked above $58 a barrel in early April and have since dropped by more than $9, reflecting a steady rise in American oil inventories and OPEC's promise to keep pumping oil at full throttle.

The price of crude oil accounts for about half the cost of making gasoline.

It the weekly EIA survey, the West Coast had the most expensive regular unleaded gasoline, with the price down 4 cents to $2.44 a gallon. San Francisco topped the EIA's survey of cities, with the price of gasoline down 3.4 cents at $2.56 a gallon.

The Gulf Coast states had the cheapest fuel, with the price down 3.2 cents at $2.06 per gallon. Among major cities, Houston had the cheapest pump price, with fuel down 3.7 cents at $2.03 a gallon.

The EIA report also showed gasoline prices were down 3.9 cents at $2.48 in Los Angeles; down 2.8 cents at $2.43 in Seattle; down 1.7 cents at $2.29 in Miami; down 2.1 cents at $2.20 in New York City, down 0.1 cent at $2.20 in Chicago; down 1.5 cents at $2.17 in Boston and down 2.4 cents at $2.14 in Denver.

Separately, the price for diesel fuel fell 3.8 cents to $2.19 a gallon, the lowest level since early March but up 43 cents from last year, the EIA said.

Truckers on the West Coast paid the most for diesel at $2.40 a gallon, down 8.4 cents from last week. The Midwest states had the cheapest diesel at $2.13 a gallon, down 2.8 cents.

Politicians have been concerned about the impact of high fuel prices.