Gasoline prices are on the rise

Looks like the days of dollar-something gasoline are over. The average cost of regular unleaded gasoline along the corridor has been inching up over the past month, and this week crossed over into the $2-plus realm. The AAA Daily Fuel Gauge report says a gallon of regular unleaded now costs a high of $2.17 in Lafayette and a low of $2.12 in Baton Rouge. That’s compared to a high of $3.63 in New Orleans and a low of $3.58 in Baton Rouge a year ago. Nationwide, even bigger increases are reported. CNNMoney says a gallon of gas costs 20 cents more than it did two weeks ago. Officials with AAA and economists blame the rising prices on the fact that the peak summer driving season is just a few weeks away, and that crude oil prices have steadily been increasing. The good news is that gas prices are still about 70% lower than what they were in May 2008, when a gallon of gas cost about $3.59. And prices aren’t expected to go up much more because the worldwide recession has put a damper on demand and the high U.S. unemployment means there are fewer drivers. Troy Green, a spokesman for AAA, told CNNMoney he would be “surprised” to see gas prices hit $3.50 a gallon this summer, unless there was a significant supply disruption, like a major hurricane in the Gulf of Mexico. To see average fuel prices in major metro areas along the corridor, click here.