Gasoline prices top $3 per gallon in state

Gasoline at the pump rose 18 cents during the past two weeks to a nationwide average of $2.79 a gallon, according to the Lundberg survey of 7,000 U.S. filling stations.

That was the highest price since early September, according to the survey.

The lowest average price for a gallon of self-service regular was $2.54 in Charleston, S.C.; the highest was $3.30 a gallon in San Francisco.

The American Automobile Association said it s survey showed all grades of gasoline were averaging more than $3 per gallon in Washington state.

Gas prices in the state are, on average, about 15 cents per gallon below their all-time highs of last May.

The AAA gave these average prices for Washington: regular unleaded, $3.026; mid-grade, $3.135; and premium, $3.29.

Trilby Lundberg, publisher of the Lundberg survey, said the latest rise stems from reduced refining capacity due to maintenance at a time of strong gasoline demand.

U.S. inventories of gasoline fell for an eighth consecutive week to 205.2 million barrels in the week ended March 30, the lowest in more than three month, the Energy Department reported on April 4.

Demand for gasoline in the last week of March was 4.7 percent higher than a year earlier at 9.5 million gallons a day, according to the department. Consumption averaged over the past four weeks was 1.7 percent higher than the same period a year earlier. Gasoline demand usually peaks between Memorial Day in May and the Labor Day holiday in September.

Refinery problems also have kept inventories from increasing.

Valero Energy Corp., the largest U.S. refiner, announced on March 28 that it won't be able to fully restore production this year at its fire-damaged McKee refinery near Sunray, Texas. The plant had a processing capacity of 170,000 barrels of oil a day before the Feb. 16 fire.