November 25, 2024
Business

Gas prices hit record high in Maine, U.S. AAA: Regular grade up 8 cents in year

PORTLAND – You don’t have to tell Larry Tibbetts gasoline is expensive.

Tibbetts, who lives in Portland, regularly travels more than 100 miles a day for work just to get to and from construction job sites in distant towns. As the price of gasoline goes up, his wallet gets a little lighter.

On Tuesday, the average price of regular-grade gasoline hit a record high in Maine at $1.757 a gallon, according to AAA. The previous record was $1.737 a gallon on Aug. 30, 2003.

Tibbetts put $10 of gas in his pickup truck Tuesday, paying $1.78 a gallon. On top of high rent and taxes he already pays, the high price of gas is one more burden.

“It’s tight – period,” said Tibbetts, 25. “It’s just a bigger bill.”

Nationally, the retail price of gasoline also hit a record Tuesday at $1.738 a gallon, according to AAA. The automobile club tracks the daily price of gasoline across the country and in metropolitan areas.

Maine’s average gasoline price was 6 cents cheaper per gallon a month ago, and 8 cents cheaper a year ago. The average price was about $1.76 a gallon in Bangor, a shade under $1.75 in Portland and $1.69 in Lewiston.

Rene Letourneau, marketing coordinator for AAA Northern New England, said strong demand, high oil prices and low inventories have fueled the high prices.

“All of these are converging at this point to push gas prices up,” Letorneau said.

The rising costs raise concerns about the impact on families, businesses and the Maine economy. After all, every extra dollar spent on gasoline is one less dollar to spend elsewhere.

Jonathan Rubin, a resource economist with the Margaret Chase Smith Center for Public Policy at University of Maine, said studies show that people are unlikely to change their short-range driving habits because of high gas prices.

And if they don’t cut their gasoline spending, that means they’ll have less money for other things, whether it be to spend at Wal-Mart or a local restaurant or to put into savings.

“It’s got to come out of something,” Rubin said.

Sue Jones, in charge of energy issues for the Natural Resources Council of Maine, said she hopes the high price of gas will motivate people to change their driving habits and check out alternative fuels.

“People should be prepared to pay high gas prices and other fuel and electricity prices for some time,” she said. “For as long as we have no control over oil.”

But for many motorists, the high price of gas is merely another expense to be reckoned with. Chris Martin, a potato farmer from Skowhegan, watched the pump as it took $53.77 to fill the tank of his Chevrolet Silverado at a Portland gas station.

He pulled out a $50 bill and some ones to pay.

“The prices don’t bother me,” he said.


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