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CNN Live Sunday
What Is Driving The Price Of Gas Up?
Aired August 24, 2003 - 18:15 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
ANDREA KOPPEL, CNN ANCHOR: What you're seeing at the gas pump is the sharpest two-week rise in retail gas prices in 50 years. The Lundberg survey shows the national price at the pump is averaging $1.72. Thats up 15.5 cents from just two weeks ago. Prices are generally lower in the East than in the West. Motorists in Charleston, South Carolina, for instance, are paying an average of $1.49 compared to $2.02 in Sacramento, California.
The average gas price is just a penny shy of the all-time high. And with us by phone from Camirillo, California to talk about what it is, is Trilby Lundberg, publisher of the Lundberg Survey.
So Ms. Lundberg what -- to what do we attribute this sudden jump in gas prices?
TRILBY LUNDBERG, GAS PRICE SURVEY: Well, there were two very phenomenal events going on in the same two week period. One in the west and one in the east. In the west, we had the pipeline, a leg between Tucson and Phoenix shut down creating a supply shortage there and affecting the whole west. And in the east, due to the electricity blackouts, several refineries had been down.
KOPPEL: That's interesting. You didn't mention the Middle East. I kind of expected to hear you say something about the ongoing conflict in Iraq.
LUNDBERG: Well, the crude oil prices remain strong, but they've been relatively stable for many weeks now. So it's not a crude-oil driven gasoline price spike.
KOPPEL: And what do you think, as you look ahead in the days to come? Is this something we can expect the prices to continue to rise? Or do you see them leveling off and then eventually coming down?
LUNDBERG: Well, two things. First of all, the -- those twin causes I mentioned are going away. And the panic buying in Phoenix that contributed to the spike will cease now that the news is that the pipeline is back up.
KOPPEL: Terrific. So it sounds like you're saying that relief is in sight?
LUNDBERG: It's probable that those factors along with the fact that we don't use as much gasoline in September, the big demand season is now ending, most of the factors point to lower prices and very soon.
KOPPEL: As we were laying out there coming up to this interview, the prices are lower in the east and higher out west. Why is that?
LUNDBERG: Well, some of that is normal because of higher taxes. Some of it is normal because of more stringent anti-smog regulations, but the highest price in the country right now is Phoenix at $2.14 for self-serve regular. And that is certainly unusual.
KOPPEL: My goodness. Well, let's hope especially for those folks in Phoenix that relief is just around the corner.
Trilby Lundberg, joining us there on the phone, thank you.
LUNDBERG: Thank you.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Aired August 24, 2003 - 18:15 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
ANDREA KOPPEL, CNN ANCHOR: What you're seeing at the gas pump is the sharpest two-week rise in retail gas prices in 50 years. The Lundberg survey shows the national price at the pump is averaging $1.72. Thats up 15.5 cents from just two weeks ago. Prices are generally lower in the East than in the West. Motorists in Charleston, South Carolina, for instance, are paying an average of $1.49 compared to $2.02 in Sacramento, California.
The average gas price is just a penny shy of the all-time high. And with us by phone from Camirillo, California to talk about what it is, is Trilby Lundberg, publisher of the Lundberg Survey.
So Ms. Lundberg what -- to what do we attribute this sudden jump in gas prices?
TRILBY LUNDBERG, GAS PRICE SURVEY: Well, there were two very phenomenal events going on in the same two week period. One in the west and one in the east. In the west, we had the pipeline, a leg between Tucson and Phoenix shut down creating a supply shortage there and affecting the whole west. And in the east, due to the electricity blackouts, several refineries had been down.
KOPPEL: That's interesting. You didn't mention the Middle East. I kind of expected to hear you say something about the ongoing conflict in Iraq.
LUNDBERG: Well, the crude oil prices remain strong, but they've been relatively stable for many weeks now. So it's not a crude-oil driven gasoline price spike.
KOPPEL: And what do you think, as you look ahead in the days to come? Is this something we can expect the prices to continue to rise? Or do you see them leveling off and then eventually coming down?
LUNDBERG: Well, two things. First of all, the -- those twin causes I mentioned are going away. And the panic buying in Phoenix that contributed to the spike will cease now that the news is that the pipeline is back up.
KOPPEL: Terrific. So it sounds like you're saying that relief is in sight?
LUNDBERG: It's probable that those factors along with the fact that we don't use as much gasoline in September, the big demand season is now ending, most of the factors point to lower prices and very soon.
KOPPEL: As we were laying out there coming up to this interview, the prices are lower in the east and higher out west. Why is that?
LUNDBERG: Well, some of that is normal because of higher taxes. Some of it is normal because of more stringent anti-smog regulations, but the highest price in the country right now is Phoenix at $2.14 for self-serve regular. And that is certainly unusual.
KOPPEL: My goodness. Well, let's hope especially for those folks in Phoenix that relief is just around the corner.
Trilby Lundberg, joining us there on the phone, thank you.
LUNDBERG: Thank you.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
