Pump price leap parallels October crude climb

Retail gasoline prices in Arkansas have jumped nearly 15 cents in the past two weeks as international crude oil futures have continued their surprising post-summer climb. The good news is that prices should not rise much higher for the rest of 2010, experts say.

According to AAA’s daily Fuel Gauge report, Arkansas motorists are paying $2.70 per gallon for regular unleaded. Retail diesel prices are averaging about $2.99 a gallon.

Chris Plaushin, AAA’s director of federal relations, said the cause for the October surge in crude oil prices is due to the relative weakness of the dollar. On Wednesday, light, sweet crude for November delivery rose $1.15 to $82.82 per barrel.

"The strength of the dollar tends to have an inverse reaction to crude prices meaning that when the dollar is weaker crude prices tend to increase," Plaushin said in the AAA’s weekly fuel gauge overview. "Retail (gasoline) prices have also pushed higher, but most analysts maintain, barring any significant events, that there will not be a sizeable increase for consumers for the remainder of the year."

Pump prices in Arkansas’ metropolitan areas range from a low of $2.65 per gallon in Pine Bluff to a high of nearly $2.72 in Northwest Arkansas. Retail prices in Little Rock are averaging $2.66 per gallon, while travelers to Texarkana and Fort Smith are paying about $2.68 and $2.70per gallon, respectively, to fill up their tanks.

According to AAA, the national retail average for a gallon of self-serve regular gasoline was $2.81 cents, 33 cents higher than one year ago, and 10 cents below the highest average price for 2010.