By Robert Pore
robert.pore@theindependent.com

According to Nebraska AAA, regular gasoline prices (without ethanol) averaged $3.26 per gallon in Grand Island on Monday. That's up 32 cents per gallon from last month and 75 cents per gallon from a year ago.

Diesel prices continue to set a daily record as Nebraska AAA reported the average diesel price in Grand Island Monday was $3.82 per gallon. That's up 48 cents per gallon from a month ago and 93 cents per gallon from a year ago.

Across Nebraska, regular unleaded gasoline (without ethanol) was $3.24 per gallon. That is up 22 cents from a month ago and 66 cents higher than a year ago.

Statewide, diesel prices were averaging $3.78 per gallon. That's up 54 cents per gallon from a month ago and $1.01 per gallon from a year ago.

According to the Lundberg Survey of 7,000 stations nationwide released Sunday, the national average price for gasoline increased by 9 cents over the last two weeks.

The report said that the average price of self-serve regular gasoline on Friday was $3.19 a gallon, mid-grade was $3.31 and premium was $3.42.

Of the cities surveyed, the report said that the cheapest price was in Cheyenne, Wyo., where a gallon of regular cost $2.95, on average. The highest was in San Francisco at $3.58.

Compared to a year ago, national gas prices are up 64 cents.

According to Rose White of the Nebraska AAA, "Unfortunately, all of the increases have not yet been passed on to consumers."

The crude oil price on Monday hit $107 per barrel because of concerns about tightening supplies and continued weakening of the U.S. dollar. In 2001, the average spot price for an imported barrel of crude oil was $15.86.

White said processed unleaded gasoline has also been on the rise, squeezing fuel sellers with a ever-shrinking profit margin.

"There is a smaller margin of profit being made at the retail level just as they are trying to get consumers used to those higher prices," White said.

While those increases have been mild, she said all of the increases are expected to be passed along.

"Those higher crude prices have not yet reached the retail level," White said.

She said the higher crude prices aren't expected to go down anytime in the future.

On Monday, White said unleaded gasoline price in the commodity spot market was $2.64 per gallon. But when the federal government's gasoline tax of 18 cents is added, along with Nebraska gas tax of 24 cents, plus other additional costs, what's left over for the station that sells the gas is slim.

Crude oil makes up about 68 percent of the cost of gasoline. Distribution, marketing and refining costs make up another 20 percent of the cost of gasoline, while taxes make up the remaining amount.

But with crude prices soaring, what worries White is some type of mechanical or natural disaster at one of the nation's oil refineries that could cause an extreme spike.

Last year at this time, the regular unleaded gasoline price in Grand Island was $2.55 per gallon. Two months later, on May 23, 2007, the price shot up to a record $3.48 per gallon because of flooding problems at a refinery in Coffeyville, Kan.

"If we are paying these higher prices and something like that does occur, we will certainly be paying much higher prices," White said. "We are sitting at a very vulnerable situation right now."

And the higher gas prices come at a time when the nation's economy is on a downturn.

"It makes it extremely difficult for families, especially those on a limited budget, to be able to afford their tank every week," White said.

According to the Alliance to Save Energy, the average household in Nebraska spent about $3,852 last year on gasoline, which was up 10 percent or $360 from the previous year.

According to www.opened.com, the United States only produces 5.1 million barrels of crude oil per day, while its petroleum consumption exceeds 20.6 million barrels per day.

The nation's top U.S. crude oil supplier is Canada at 2,353,000 barrels per day and Mexico comes in second with 1,705,000 bpd. Non-Opec suppliers result in U.S. imports of 8,190,000 barrels of crude oil per day.