Costly Gas

Today's high gas prices will go higher, says government

Think gasoline prices are high now? Just wait a few weeks. Gasoline costs are now at record levels, with motorists paying an average of two-dollars-22 cents a gallon last week.

The Energy Information Administration figures the average price of a gallon will peak at two-dollars-35 cents in May. And it's a lot higher in many places. Gasoline in the West, for example, is often 18 to 25 cents higher than the national average. But we're not driving less. The statistical agency projects demand for gasoline this summer to be one-point-eight percent higher than last summer. What's driving the higher costs?

The administrator of the Energy Information Administration blames the high cost of crude oil, limited refining capacity and concerns about whether global oil production will be able to keep pace with growing demand.