Last modified: Tuesday, January 6, 2009 2:15 AM EST
A Hess employee walks away after changing the price of gas on a sign in front of the station Monday. (Staff photo by Martin Gavin)

Gasoline's highs and lows

After falling for 15 straight weeks, gasoline prices in Massachusetts are unchanged this week, signaling a plateau that could set the stage for an uptick in prices.

Area motorists remain leery of the costs, expecting them to again climb after four months of no increases.

"We definitely cut down on joy rides during the holiday season to see Christmas lights due to the high gas prices," said Denise McNamee of Attleboro. "However, even with the recent drop in prices, we are still more conscious about coordinating errands in order to make less trips. The feeling has not left us yet that the prices could go back up as quickly as they came down."

"Personally my habits have not changed. I have noticed that quite a few people are starting to travel again though. I talked to a woman this morning who is traveling to Florida," Claire Jeffrey of Attleboro said. "I think people are cutting back in general, regardless of the changing gas prices due to the current state of the economy. The drop in prices still puts us in a little bit of a better mood, though."

AAA Southern New England's weekly survey Monday in Massachusetts found self-serve, regular gasoline averaging $1.62 per gallon, the same price as last week. Costs were $3.55 on Sept. 22, before the plunge, and are far from the record high of $4.08 in early July.

The cost is $1.43 less than the $3.05 found at this time a year ago.

In Rhode Island, gas prices have risen for the first time in four months, averaging $1.67 per gallon, which is 2 cents above last week and the highest since Labor Day. That is also the national average, which is up 1 cent.

Israel's ground offensive in Gaza and a dispute between Ukraine and Russia over gas imports pushed oil prices up $2.47 cents Monday to settle at $48.81 a barrel on the New York Mercantile Exchange.

While Israel and Palestine don't produce oil, the Middle East region is key to oil production and shipment. However, analysts said the oil price rise is an indication the market wants to move higher and a belief the economic doom and gloom has hit bottom and demand will be rising.

Other experts say oil prices were supported by increasing evidence OPEC is adhering to its production cuts, and the announcement the U.S. government intends to add more oil to its strategic reserves. Oil prices peaked at $147.27 a barrel on July 11, but hit a four-year low in recent weeks.

The range in prices in the latest AAA survey for regular gasoline in Massachusetts is 27 cents, from a low of $1.52 to a high of $1.79.

Midgrade is going for $1.77, with a range of $1.54 to $2.09. Premium is running $1.80, from $1.66 to $2.29. Diesel fell 10 cents last week to $2.57.