Gas Pump Prices Hit All-Time High-AAA
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Mar 23, 10:32 AM (ET)

NEW YORK (Reuters) - U.S. average retail gasoline prices hit an all-time high on Tuesday as a tight-fisted OPEC policy and rising demand constricted supplies, according to the American Automobile Association.

The average price for regular gasoline at the nation's pumps was $1.738 per gallon, up less than a cent from the previous record hit last September, according to the motorist group's survey of more than 60,000 stations.

Energy prices have been on the rise in recent months, with U.S. stockpiles near their lowest levels since the 1970s while an economic recovery spurs higher demand.

Oil producer group OPEC, which controls roughly half of the world's exported crude, is mulling whether to further cut global supplies starting April 1, adding to a series of production cuts that have brought oil prices to nearly $40 a barrel.

The U.S. government on Monday showed gasoline prices less than half a cent from the all-time high, and predicted prices would average a record $1.83 per gallon in April and May during the run-up to the summer driving season when Americans typically take to the road.

The head of the Energy Information Administration, Guy Caruso, said at an oil industry meeting in San Antonio on Monday that he was "really concerned" about thin U.S. gasoline inventories, which are running about 13 million barrels lower than the agency had projected.

The volatile gasoline landscape has drawn the attention of lawmakers from both political parties, making it a likely issue in this presidential election year.

Democratic Sen. Ron Wyden of Oregon on Monday reintroduced a bill requiring the Federal Trade Commission to act on what he called anti-competitive industry pricing policies.

The FTC earlier this month opened an informal probe into California's retail gasoline prices -- the highest in the nation -- at the urging of Democratic Sen. Barbara Boxer of California.

Oil and gas refiners have denied using any anti-competitive practices, instead blaming high prices on tight supplies caused by dozens of different gasoline-blending rules for metropolitan areas and the lack of enough imports of the motor fuel.

Republican Sen. Chuck Grassley of Iowa said soaring gasoline prices are a good reason for the Senate to pass a stalled energy bill.

AAA is the largest motorist and travel group in the United States, with about 44 million members.

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