Lack Of Oil Supply Causes The Prices To Rise

Summer is just around the corner, but some vacation plans are being put on hold because of prices at the pump.

Gas prices are already approaching record levels and experts expect them to keep on climbing.

From coast to coast gas prices across the country have been climbing for nine straight weeks, causing frustration for drivers.

The national average for a gallon of regular unleaded is $2.70, which is up $.21 from just a month ago.

In California, prices are the highest in the nation.

Last week, some stations in San Francisco were selling gas for more than $4 a gallon.

Experts say part of the blame for the jump at the pump is a lack of supply.

The latest government data shows a sharp drop in gasoline supplies.

"Unfortunately demand for gasoline has been rising faster than our
Ability to produce it domestically, “said Geoff Sundstrom, AAA spokesperson.

President Bush says a big part of the problem is America's addiction to oil, but a watchdog group blames oil company greed for the gas price spikes:

Judy Dugan of Oilwatchdog.org said, "The oil companies have found that it is more profitable for them to sell less gasoline at a higher price and because current laws do not do anything to stop them, they do it."

For now, experts say, most Americans are not changing their driving habits because of the high prices.

"Because more people are working in this country than ever before and have jobs these price increases do not seem to affect them as much as they have in the past," said Phil Flynn, energy analyst.

Still motorists' attitudes could shift, if gas price increases remain in high gear.

AAA says prices will continue to rise for the next few weeks, and are expected to peak just before Memorial Day weekend.


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