Return to Transcripts main page

CNN Live Sunday

Interview With Trilby Lundberg

Aired March 24, 2002 - 17:05   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.
KATE SNOW, CNN ANCHOR: Gas prices are soaring. The Lundberg survey says the gasoline went up more than 14 cents at the pump over the past two weeks. Trilby Lundberg is publisher of that survey. She joins us now on the phone from Camarillo, California. Ms. Lundberg, thanks for joining us. Tell me why you think that prices at the pump are going up so high?

TRILBY LUNDBERG, PUBLISHER, LUNDBERG SURVEY: Well, to just correct, they are not going up high, they are going up fast. It is a very fast increase. We believe the fastest increase, the greatest increase in two weeks in history. The reason for the sudden change is that demand for gasoline is up seasonally, and an extra amount due to our economy recovery.

SNOW: So a lot of this because people are traveling more and they have more money to spend?

LUNDBERG: Crude oil prices are helping too. OPEC will adhere to its production cuts through June, and the world is demanding more oil, so oil prices are part. The other part is we've used up some excess supplies that caused a big glut and price crash of late last year. So it's a price recovery in part and a boom in demand vis-a-vis the season, we start using more this time of year.

SNOW: I have been watching a local gas station around the corner from my house. Every day it looks like they have to go out there and change the sign. How much longer you think that this goes on?

LUNDBERG: Well, it's unknowable. It will depend partly on the huge unknown of Middle East oil supplies, some premium price of which is already built into crude oil prices, and it will depend on just how strong our economy is. Hopefully, there will be no disruption of gasoline supply due to our infrastructure. Refineries are preparing now to crank out as much as possible for our big summer demand push.

SNOW: Right. Is there a difference across the country from region to region at all in terms of higher prices in some regions than others?

LUNDBERG: Well, in this case, it's not a regional phenomenon. These are fundamentals of supply and demand and of crude oil prices, so they are up everywhere quite a bit. The highest prices are usually where the formulations to prevent smog and taxes are the highest, which is the West Coast. And the lowest usually where the conventional gasoline is still allowed.

SNOW: Yeah, we're looking at a map right there that plays that out perfectly. The West Coast has got $1.55, and the East Coast, Atlanta, $1.22. So, thank you so much, Trilby Lundberg, joining us on the phone , publisher of the Lundberg survey. Thank for joining us.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com