Oil higher; retail gasoline prices climb

NEW YORK (AP) — Oil rose near $109 per barrel Tuesday, pushed higher by a weaker dollar. Retail gasoline prices continued to climb, reaching a national average of $3.84 for a gallon of regular.

Pump prices in the U.S. have increased for the last 28 days, adding an average of 29 cents per gallon since March 22, according to the Oil Price Information Service. That means Americans are now paying roughly $110 million more per day for the same amount of fuel.

The sharp rise could be pressuring Americans to drive less and buy less gas, though economists say it’s too early to conclude that’s happening. People usually curb their driving as a last resort, according to retail experts. So a drop in gasoline consumption is usually accompanied by a decline in other kinds of spending.

“I don’t think prices can be sustained at these levels,” said Fred Rozell, retail pricing director at OPIS. Eventually, it’s going to reach a tipping point in which it will affect global oil prices, Rozell said. When it does that, gas prices should start coming down.

Motorists may not see much relief anytime soon, however. Gasoline prices typically rise in the summer as refineries are required to produce more expensive summer blends of gasoline to help reduce harmful emissions. The Energy Information Administration said that retail prices could peak at $3.91 per gallon during the summer driving season. OPIS says the national average could reach $4 per gallon this year.