Gas price shatters record

Gas price shatters record
by THE CANADIAN PRESS

NEW YORK -- Retail gasoline prices in the United States pushed past a record high yesterday as Canadian prices continued to rise as well, although a bit more slowly because of the strong Canadian dollar.

U.S. prices moved to more than $3.40 US a gallon - about 89 cents US a litre - yesterday, fulfilling expectations that they'll keep climbing toward $4 US a gallon as the summer driving season approaches.

Oil prices, meanwhile, fluctuated after setting yet another record high overnight. Analysts said investors were locking in gains from crude's ongoing rally and trying to determine whether prices have more room to rise.

At the pump, the average U.S. price of a gallon of unleaded gas rose 1.9 cents overnight to $3.418 US a gallon, according to a survey of stations by AAA and the Oil Price Information Service.

In Canada, gasoline prices are $1.16 a litre and higher in most markets. They were around $1.18 yesterday in Edmonton.
Some industry analysts expect the cost of fuel to increase to between $1.30 and $1.40 a litre this summer.

Prices appear to be rising more slowly in Canada in part because the high value of the Canadian dollar is offsetting some of the higher costs from rising oil prices.

Since crude oil is traded in U.S. dollars, a rising loonie against the American greenback has eaten into a part of the increase. As well, gasoline imported from the United States is cheaper to Canadian consumers when the loonie soars.