"The price of diesel has gone crazy...biggest 1-day increases we've seen" [View All]

[Bush_Eats_Beef]

Gas prices jump 11 cents

WEEKEND SPIKE ACROSS NATION

By Gary Richards

Mercury News

http://www.mercurynews.com/mld/mercurynews/news/special_packages/gas_prices/12804425.htm

Gas prices soared 11 cents nationwide over the weekend, a sign that the country's overtaxed refineries are having trouble cranking out enough fuel despite a glut of oil on the worldwide market and a major drop in sales at the pump.

Americans were paying an average $2.92 a gallon for self-serve regular on Sunday, up from $2.81 on Thursday. according to the AAA. Prices also inched up several cents over the past three days in California and the South Bay to $2.98.

It's worse for drivers who own diesel cars and transit agencies whose buses run on diesel. That average price in California climbed to $3.39 a gallon Sunday, up 19 cents from a day earlier and four-tenths of a cent lower than the diesel record set on Sept. 8. ``The price of diesel has gone crazy,'' said Jerry Cummings of Rotten Robbie, calling them the ``biggest one-day increases we have ever seen. It looks like we will be in for higher prices and lots of volatility.''

Prices should be dropping. Refinery damage from Hurricane Rita in the Gulf of Mexico wasn't as severe as feared. And the nation's drivers -- stung by prices that for the first time hit $3 a gallon from Iowa to New York after Hurricane Katrina's fury late last month -- have eased off the pedal. Demand in the United States is down by 200,000 barrels a day from a year ago, one of the biggest declines in more than two decades. But there are other worries. Eleven refineries in Louisiana and Texas remain closed, damaged by the dual wallop of Katrina and Rita. That's idled more than 10 percent of U.S. production.