GAS PRICES UP; 3-CENT HIKE COMMON IN CITY

Gasoline prices are up again, about 3 cents a gallon.

Tight oil supplies following an unusually cold winter and decline in U.S. production mean gasoline prices could increase further as summer begins, an Energy Department forecast said Wednesday.

Jay Hakes, energy information administrator, said motorists are expected to drive more than 7 billion miles a day this summer.

"Things are already on a rampage again," said one Cape Girardeau gasoline distributor and retailer.

Bob Blank of Bi-States Oil was one of a number of service station operators to hike prices on all grades early Thursday.

"We took another hit on wholesale prices Wednesday," said Blank. "This whole thing is getting us disturbed."

The majority of Cape Girardeau stations, along with some in Fruitland and Jackson, put up new numbers Thursday: $1.19.9 for regular unleaded to $1.35.9 for super unleaded. Diesel fuel also increased to $1.19.9.

"We're only asking for our increase back," said Blank. "It's tough on the consumer and it's tough on us. Our costs of operations are going through the roof."

In addition to about 40 cents a gallon in federal, state and local taxes, the cost of shipping fuel from the Gulf Coast to here is about a nickel a gallon.

As of mid-afternoon Thursday, some stations were still holding at $1.15.9 for regular unleaded, but premium unleaded was listed at $1.37.

Prices in the Cape Girardeau area are still down from the national average for all grades. Even with the new price schedule -- $1.19.9, $127.9 and $1.35.9 -- the average here is $1.27, compared to $1.29 nationally.

The overall average could increase during the summer, as high as $1.35, experts say. Prices, however, could start dropping in August to an average of about $1.23.

Last summer the average overall price was $1.24 a gallon.

The latest 3-cent hike comes on the heels of a 3-cent increase in late March, resulting in a 6-cent-a-gallon hike within a month.

Breaking average prices down, self-service pumps, where more than 95 percent of all gas is sold, averages about $1.18.9 for regular unleaded nationally, $1.28 for mid-grade unleaded and $1.36 for premium unleaded.

The Energy Department's annual summer gasoline outlook calls for a record demand of more than 8 million barrels of oil per day by August.

The end of the federally mandated 55 mph speed limit, permitting states to increase speed limits, may impact gasoline use. The federal speed limit was originally imposed as a means of saving energy during the 1970s.

The Department of Energy reported that U.S. petroleum demand is expected to increase by an annual average of 370,000 barrels a day in 1996 and 1997, while domestic production falls an average of 210,000 barrels a day. As a result, imports should reach 50 percent of demand by 1997. A barrel is 42 gallons.