Gas Prices Approach Last Year's High

Chart of the Week for July 28 - August 3, 2006

The national average price of gasoline has been rising quickly over the past few months and causing concern with consumers. The average price per gallon of regular unleaded gasoline as of July 24th is $3.00, close to the record high level of $3.07 last September when Hurricane Katrina disrupted fuel supplies. This is about a 70 cent increase from this time last year. Because crude oil accounts for about half the cost of making gasoline, soaring prices may keep climbing due to the current tension in the Middle East. Expensive gasoline is cutting into many family budgets, reducing extra money to spend on other goods and services. Federal Reserve Chairman Ben Bernanke also expressed his concern about the effect of high oil prices on the U.S. economy to Congress last week.

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