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CNN Live Sunday

Gas Prices Hit Record Highs

Aired May 06, 2001 - 16:06   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.
DONNA KELLEY, CNN ANCHOR: The price of gasoline has never been higher. That's the finding of the latest Lundberg Survey of gas prices around the country. The survey found the average price jumped 8.6 cents per gallon during the past two weeks, with a gallon costing, on average, nearly $1.80.

We have the author of the study, Trilby Lundberg, on the phone with us with details. Trilby, thanks for joining us once again. When last we talked, the prices were up 12 cents. Now they're up about 9 cents. Why?

TRILBY LUNDBERG, LUNDBERG SURVEY: Well, it's an important increase, but it's about a third less than the previous two weeks. There is a supply tightness in gasoline, not crude oil, and this is bringing the price up.

KELLEY: And why is the supply tight in gasoline right now? Is that because of the clean air standards that are in place in some areas?

LUNDBERG: It does have a great deal to do with that. It's harder for the industry to supply so many different kind of gasoline to the right place at the right time. But it's also that refining capacity is tight. The refiners are cranking out just about as much as they can to supply spring demand as is possible.

KELLEY: Do you have any idea how long the struggle to keep up with the supply will go on?

LUNDBERG: I think is had alleviated somewhat, and that's why we see a much smaller increase this time than last time. It does give us a record high price. By the way, adjusted for inflation, it's still a $1 below its peak price in March '81.

KELLEY: How about the summer driving season when the kids get of school and vacation hits? Does that look bad to you?

LUNDBERG: Well, arguably, the role that gasoline plays in our lives is not as great as it appears with the big price signs on the street. Hopefully, by that time, there will not be any threat of shortage of gasoline, although prices will be higher than they were in recent years.

KELLEY: OK, Trilby Lundberg with the Lundberg Survey, thanks as usual, and we'll talk to you soon.

LUNDBERG: Thank you.

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