LI gasoline prices continue to climb

Long Island gasoline prices climbed another 3 cents a gallon last week as the nationwide average hit the $3 mark on a Christmas Eve for the first time, according to the AAA.

Regular averaged $3.342 a gallon in Nassau and Suffolk Thursday, up from $3.313 a week ago, according to a survey of gas stations done for the group. That's now 49 cents higher than a year ago, and 15 cents higher than a month ago. And it was the highest since Oct. 15, 2008, when the average was $3.336, the AAA said.

"It's out of control," said Eddie Novak of Sayville, who works out of his truck. "Every morning I put in half a tank of gas, 30, 40 dollars worth of gas just to get someplace. It's crazy."

Gas prices, which normally decline at the end of the year, have been rising instead due to high crude oil prices and increased global demand, analysts said. The nationwide average Thursday was $3.071, up 45 cents from a year ago, according to the AAA.

Tom Kloza, oil analyst for Oil Price Information Service in Wall, N.J., said, "This was driven by crude oil prices ending the year as high as they've been since October 2008. It's also driven by the perception that next year is going to be a robust year in terms of economic growth and development in a lot of emerging countries, most notably China."

Kevin Saville, the editor of a Manhattan-based news service of Platts, an energy information company, said U.S. demand also was "strong leading up to Christmas" - before last weekend's blizzard hampered travel.

Looking forward, Saville said, "If the stock market continues to show strength going into the new year and crude prices stay high, gasoline prices are going to stay buoyant."

Crude oil was above the $90-a-barrel price until Thursday afternoon, after the U.S. Department of Energy reported a smaller-than-expected drop in supplies. Crude oil for February delivery fell $1.28, or 1.4 percent, to settle at $89.84 a barrel, the biggest daily decline since Nov. 30.

In the first three months of 2011, some analysts expect prices to fall on lower demand.

Prices for home heating oil also continued to rise. The average gallon went up 6 cents to $3.497 at full-service dealers in the week ended Dec. 27, according to a survey by the state Energy Research and Development Authority.