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SF Gas Prices Could Hit Record This Weekend

SAN FRANCISCO -- Driven by oil prices spurting to new six-month highs -- the price of crude closed up $1.95 cents at $66.03 a barrel -- the cost of gasoline could hit a new record in San Francisco this coming weekend.
The latest spike was caused by declining U.S. gasoline inventories and the fear that strained relations between Iran and Western nations could put exports in jeopardy.

While the current national average per gallon is only $2.62, well below the record U.S. average price of $3.06 that was reached in September of 2005, California's average price stands much higher at just over $3.21.
The average price of gas in San Francisco frequently is among the highest in the state average. According to the gas-price survey on AAA daily fuel gauge report Web site, the current cost of $3.34 per gallon is up 30 cents from just a month ago and only two cent short of the previous record from mid-May of last year. There are reports of some stations selling gas for over $3.80 a gallon.

Besides the growing tensions in the Middle East due to the ongoing escalating dispute over Iran's seizure of 15 British sailors and marines, refineries in the U.S. have been forced to reduce fuel production because of mechanical issues, which has also forced gas prices to new heights.


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