At $3.39, gas prices achieve record high

By Brenda Showalter, The Republic

bshowalter@therepublic.com

Gas prices jumped to record highs in Indiana and across the nation Tuesday, with several stations in Bartholomew County selling a gallon of self-serve unleaded for $3.39.

   Hoosier motorists have found themselves in unfamiliar territory recently, as the state's average is above the national average.
   As of Tuesday morning, the national average was $3.08 a gallon and Indiana's average was $3.19, according to AAA motor club. By lunchtime in Bartholomew and surrounding counties, prices rose about 20 cents a gallon.
"It's interesting to note that in Indiana we generally are at the lower to midway point (for the country)," said Greg Seiter, Hoosier AAA public affairs manager.
"Now we are among the higher in the nation."
Seiter said he was puzzled as to why the big increase has occurred.
"There is no clear-cut rational on how high they are and why they have jumped so rapidly."
   Even accounting for some factors that trigger increases, including higher crude oil prices and a switch to a summer-blend fuel, the recent prices are higher than expected.
   "There is nothing to justify what we are seeing," Seiter said. "We're looking for answers the same as the public."
   The U.S. Energy Information Agency will have to revise its projections made on May 8 when it stated that the summer's prices should peak at $3.01.
   With Memorial Day and the busy summer driving season approaching, many consumers are expecting to pay at least $3 a gallon, and Seiter doubts the price hike will affect travel plans.
   When national gas price averages peaked in September 2005 after Hurricane Katrina, consumers' demand for gas did not decrease.