Declining Value of U.S. Dollar Pushing Gasoline Prices Higher

The national average price of gasoline is up 5-cents per gallon in the past week.In Florida, the average price increased 8-cents per gallon; in Georgia, the average price is up 7-cents per gallon; and in Tennessee, it has increased by 8-cents per gallon.

U.S. fuel consumption remains relatively flat and OPEC has revised its fuel consumption forecast downward to 230,000 barrels per day. An ample supply of fuel has refineries reducing their output and OPEC member countries reducing exports.However, gasoline prices continue to climb running parallel to crude oil’s consistent increases from the $50 per barrel range in April to the $70+ per barrel range recorded thus far in June. “The dollar has lost value over the past five months versus many currencies, but most notably against the Euro, the Japanese Yen and the British Pound.The decline is prompting investors and world banks to move into other currencies they believe hold greater security.It is also prompting deeper investment into commodities as a hedge against the weak dollar and the largest commodity market is crude oil.Increases in crude almost always push gasoline prices higher,” said Gregg Laskoski, managing director of public relations, AAA Auto Club South.

On the New York Mercantile Exchange (NYMEX) crude oil closed Friday at $72.04 per barrel, an increase of $3.60 per barrel over last week’s closing price.

CURRENTANDPAST PRICE AVERAGES Regular Unleaded Gasoline CurrentWeek AgoMonth AgoYear Ago National: $2.663 $2.613 $2.290 $4.073 Florida: $2.662 $2.586 $2.309 $4.031 Georgia: $2.510 $2.447 $2.167 $4.010 Tennessee: $2.501 $2.425 $2.172 $3.909 AAA’s Daily Fuel Gauge Report (fuelgaugereport.com) is updated each day and is the most comprehensive; reflecting actual prices from credit card transactions within the past 24 hours at two-thirds (100,000 stations) of the gasoline stations in the U.S.Its accuracy is unparalleled.