Prices surpass DOE's peak projection

The national average price of gasoline has climbed 25 cents a gallon since May 1, and in Florida the average price has increased by 25 cents.

While consumers are puzzled by the consistent climb, Tom Kloza, chief oil analyst for Oil Price Information Service (OPIS), says retail gasoline prices are reflecting sizeable wholesale price increases during the same period. Wholesale prices on most consumer goods have increased since early April.

The national average price of $2.30 per gallon has already exceeded the peak price ($2.25 per gallon) that the U.S. Department of Energy projected in February. Consumer travel is expected to be up this summer beginning with a projected 1.5- percent increase in Memorial Weekend travel, and if leisure travel is up, gasoline prices tend to follow the direction of consumer demand.

"Despite the 4-percent drop in crude oil this past week, the perception that economic recovery is pending is also helping to keep both oil and gasoline prices moving higher for the short term," said Gregg Laskoski of AAA Auto Club South. "Additionally, OPEC is scheduled to meet in Vienna on May 28, and its members may announce yet another reduction in a move to tighten supply and place additional pressure on crude oil pricing."

Crude oil on the New York Mercantile Exchange (NYMEX) closed last Friday at $56.34 per barrel.