Average Gas Price Drops First Time in 5 Weeks
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Jun 1, 4:25 PM (ET)

By Tom Doggett

WASHINGTON (Reuters) - U.S. drivers finally got a break at the pump, as the price of gasoline fell 1.3 cents to an average $2.051 a gallon on Tuesday, the first decline in five weeks, the government said.

However, the latest pump price for regular unleaded gas is still up 58 cents from a year ago, according to the U.S. Energy Information Administration's weekly survey of service stations.

The highest U.S. gasoline price was $2.99 a gallon in March 1981, adjusted for inflation in 2004 dollars, according to the Energy Department's analytical arm.

Gas prices may still go higher as the cost of crude oil topped $42 a barrel on Tuesday for the first time ever. The price of oil accounts for almost one-half the cost of making gasoline.

Crude for delivery in July hit a fresh record high on the New York Mercantile Exchange, rising $2.45, or 6.14 percent, to $42.38 a barrel amid fears of supply disruptions after a weekend attack in major oil producer Saudi Arabia.

The Saudis will push for OPEC to increase its crude output when the cartel's oil ministers meet this Thursday in Beirut.

The EIA's weekly report also showed the retail price for cleaner-burning reformulated gasoline, sold in polluted metropolitan areas, increased half a penny to $2.15 a gallon.

Separately, the EIA survey said the average pump price for diesel fuel fell 1.5 cents to $1.746 a gallon, but was still up 32 cents from a year earlier.

Truckers on the West Coast paid the most for diesel fuel at $2.105 a gallon, down 9.3 cents from the prior week. The lower Atlantic states had the cheapest diesel at $1.655, down a slight 0.3 cent.



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