Gas prices continue to climb

LYNN – Gasoline prices continue to soar as Americans across the country celebrate the Memorial Day holiday weekend.In New England, the average price for a gallon of regular, unleaded self-serve topped $2.33 on Thursday. The American Automobile Association (AAA) forecast that the gallon price would not exceed $2.50, but many service stations have been pumping premium-grade fuel for close to $2.60.In Lynn, the lowest gasoline prices were found Thursday at the Citgo service station on Western Avenue and the Richdale Gas on Walnut Street, both selling a gallon of regular for $2.25. The Global service station on Eastern Avenue offered regular at the pump for $2.27 while the Global at the corner of Boston and Washington streets set the price at $2.29, as did Prime Energy on Boston Street.Many economists and government officials were shying away from the price increases, preferring instead to report that gasoline prices are about 40 percent lower than at the same time last year.The price of a gallon of regular gasoline in Florida is up to $2.33, slightly higher than the national average of $2.30, according to AAA. Just last month, it was $2.10 a gallon in Florida. But, a year ago at this time, gas was selling for $3.81 a gallon.Oil prices hit a six-month high Wednesday, climbing above $62 a barrel after a government report showed a drop in U.S. oil supplies for the second straight week.In southern New England, this is the sixth consecutive week of gas price increases. Since May 1, prices have risen by 25 cents per gallon.Analysts attribute the increase in crude oil price to three factors – cuts in output by the Organization of Petroleum Exporting Countries; an intuition by many traders that the economy will not worsen and therefore the demand for petroleum will not increase; and a decline in value of the dollar, making oil a bargain for traders using foreign currencies.