UPDATE 2-US retail gasoline price at record $3.79/gln-Govt

Reuters: [2008-05-19 23:16:00]

(Adds Congress halts oil deliveries, record diesel prices)

By Tom Doggett

WASHINGTON, May 19 (Reuters) - More U.S. drivers are getting closer to $4 sticker shock at the pump as the average price for gasoline soared 6.9 cents over the last week to a record of $3.79 a gallon, the federal Energy Information Administration said on Monday.

The national price for regular, self-service gasoline is up 57 cents from a year ago because of rising crude oil prices that recently reached a record near $128 barrel at the New York Mercantile Exchange.

The price of crude accounts for more than 70 percent of the cost of making gasoline.

If oil prices stay near current levels, some energy experts warn consumers could be paying $4 a gallon for fuel in most parts of the country when the busy summer vacation season gets underway.

Congress is hearing the consumer frustration and is looking for ways to show it is tackling runaway fuel prices.

Lawmakers last week overwhelmingly passed legislation halting oil deliveries to the government's emergency petroleum stockpile in order to keep more supplies on the market and hopefully lower fuel costs.

However, many experts don't think consumers will see much savings at the pump.

The EIA's latest weekly survey of service stations found gasoline was the most expensive on the West Coast at $3.88 a gallon, up 5 cents. Chicago had the highest city price at $4.02, up 7.5 cents.

The Rocky Mountain states had the lowest regional price at $3.69 a gallon, up 7.7 cents. Houston had the cheapest pump price, up 7.7 cents at $3.65.

Separately, the price truckers and other users of diesel fuel paid jumped 16.6 cents to a record $4.50 a gallon, the EIA said.

Diesel has soared 35 cents a gallon in the last two weeks and is up $1.69 from a year ago.

The central Atlantic states had the most expensive diesel at $4.68 a gallon, up 16.6 cents. The Rocky Mountain region had the cheapest fuel at $4.44, also up 16.6 cents, the EIA said. (Editing by Christian Wiessner) ((tom.doggett@thomsonreuters.com; +1 202 898-8320; Reuters Messaging: tom.doggett.reuters.com@reuters.net)) Keywords: USA GASOLINE/PRICE

UPDATE 1-U.S. retail gasoline price at record $3.79/gln-EIA

Reuters: [2008-05-19 22:47:00]

(Adds gasoline prices by regions and cities)

WASHINGTON, May 19 (Reuters) - U.S. drivers are getting closer to $4 sticker shock at the pump as the average price for gasoline soared 6.9 cents over the last week to a new record of $3.79 a gallon, the federal Energy Information Administration said on Monday.

The national price for regular, self-service gasoline is up 57 cents from a year ago because of rising crude oil prices that recently reached a record near $128 barrel at the New York Mercantile Exchange.

If oil prices stay near current levels, some energy experts warn consumers could be paying $4 a gallon for fuel in most parts of the country when the busy summer vacation season gets underway.

The EIA's latest weekly survey of service stations found gasoline was the most expensive on the West Coast at $3.88 a gallon, up 5 cents. Chicago had the highest city price at $4.02, up 7.5 cents.

The Rocky Mountain states had the lowest regional price at $3.69 a gallon, up 7.7 cents. Houston had the cheapest pump price, up 7.7 cents, at $3.65. (Reporting by Tom Doggett; Editing by Marguerita Choy) ((tom.doggett@thomsonreuters.com; +1 202 898-8320; Reuters Messaging: tom.doggett.reuters.com@reuters.net))

Keywords: USA GASOLINE/PRICE

*TOP NEWS* Energy

Reuters: [2008-05-19 22:39:00]

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> European Power and Gas                            [TOP/ELE] 
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TOP STORIES 
> Oil rises past $127, OPEC says no need for hike   [nSYD309354] 
> U.S. crude, gasoline inventories seen higher      [nN19545620] 
> U.S. retail gasoline price at record $3.79/gln-EIA[nWAT009517] 
> US retail diesel fuel at record $4.50/gallon -EIA [nN19560640] 
> US senator promotes bill to freeze ethanol mandate[nN19338610] 
> Ecuador says lowers 2008 oil production target    [nN19547225] 
> Current oil production meets demand-Saudi Arabia  [nL19688026] 
> OPEC will not meet before Sept-OPEC President      [nL1929254] 
> OPEC Sept meet unlikely to hike supply-Pres Khelil [nL1941445] 
> China releases strategic fuel reserves after quake[nPEK335170] 
> Iraq expects to boost oil exports to post-war high[nL19666317] 
MARKETS 
> NYMEX oil ends at record above $127, trade choppy [nN19564920] 
> US refinery margins gain on stronger products-CS  [nN19531754] 
> China demand for W.Africa crude falls for June    [nL19234861] 
> Angola oil exports steady in July-traders          [nL1975512] 
> North Sea Troll crude plan to slip in June-trade   [nL1979868] 
> North Sea crude output to fall in June            [nL19209317] 
ANALYSIS, INTERVIEW 
> Oil price defies swelling supplies                [nL19691411] 
> U.S. refiners turn attention to diesel amid boom  [nN19435778] 
CORPORATE NEWS 
> Nigeria signs $2bln funding deal with Exxon       [nN19205985] 
> Italy's Eni, Congo sign tar sands accord           [nL1985421] 
> OMV goes back to court over MOL shares            [nL19117122] 
> China Natural Gas ready for Nasdaq, thinks bigger [nPEK223503] 
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U.S. retail gasoline price at record $3.79/gln-EIA

Reuters: [2008-05-19 22:33:00]

WASHINGTON, May 19 (Reuters) - U.S. drivers are facing more sticker shock at the pump as the average price for gasoline soared 6.9 cents over the last week to a new record of $3.79 a gallon, the federal Energy Information Administration said on Monday.

The national price for regular, self-service gasoline is up 57 cents from a year ago because of rising crude oil prices that recently reached a record near $128 barrel at the New York Mercantile Exchange. (Reporting by Tom Doggett)

((tom.doggett@thomsonreuters.com; +1 202 898-8320; Reuters Messaging: tom.doggett.reuters.com@reuters.net)) Keywords: USA GASOLINE/PRICE

UPDATE 2-US senator promotes bill to freeze ethanol mandate

Reuters: [2008-05-19 21:43:00]

(Recasts, adds Sen. McCain co-sponsoring the bill, Texas request to cut ethanol mandate)

By Tom Doggett

WASHINGTON, May 19 (Reuters) - U.S. Sen. Kay Bailey Hutchison on Monday proposed freezing the federal mandate for corn-based ethanol at this year's level, contending that using so much grain for fuel was pressuring the food supply.

Hutchison introduced legislation that would freeze the federal mandate for corn-based ethanol at 9 billion gallons. The Texas Republican said this would allow for transition to a sustainable renewable fuel source that does not use food.

"The ethanol mandate is clearly causing unintended consequences on food prices for American consumers," Hutchison said. "Freezing the mandate is in the best interests of consumers, who cannot afford the increasing prices at the grocery store due to the mandate diverting corn from food to fuel."

Republican presidential candidate John McCain is a co-sponsor of the bill.

Hutchison said World Bank numbers show global food prices have jumped 83 percent in the last three years. She cited a United Nations report that predicted food costs will increase another 10 to 15 percent due to biofuel production if the renewable fuel mandate is not changed. Energy legislation signed into law last year requires an annual increase in the amount of ethanol produced domestically, from 4.7 billion gallons in 2007, to 9 billion this year, increasing to 15 billion in 2015 and then 36 billion gallons by 2022.

Congress provided the Environmental Protection Agency with the authority to waive the mandate, or adjust it as necessary to provide relief for consumers.

A Hutchison spokesman said the ethanol freeze legislation could be attached to the farm bill, which the president has threatened to veto because of expensive commodity programs.

The EPA already is considering a request from Texas Governor Rick Perry to cut the renewable fuel standard in half for this year, claiming the adverse economic impact of ethanol production is causing higher corn prices.

The agency said the governor's request will be open for public comment for 30 days. The EPA must decide on the waiver request within 90 days after receiving it, which means the agency has until late July to act on it.

(Reporting by Tom Doggett; Editing by David Gregorio) ((tom.doggett@thomsonreuters.com; +1 202 898-8320; Reuters Messaging: tom.doggett.reuters.com@reuters.net)) Keywords: CONGRESS ETHANOL