US gas prices are back on track as industry continues to struggle

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NEW YORK — Gasoline and diesel prices are climbing, but that may not last forever.

Gasoline prices are soaring this year in part because of the economic slowdown, as manufacturers are retrenching their factories.

Gasoline prices for a gallon of regular unleaded rose 0.5 cents to $2.34 a gallon in New York City and 1.6 cents to the dollar in Philadelphia on Thursday, the day after the Federal Energy Regulatory Commission reported that U.S. gasoline production was the lowest since January 2009.

The wholesale price for a 1-gallon tank of gasoline rose by 2.5 cent to $1.84 in New Jersey.

Diesel prices rose 2 cents to a dollar in Dallas, the fourth-highest gain of the day.

Budgets for the state’s most heavily populated cities, such as New York, Los Angeles and San Francisco, were revised Thursday to reflect the reduced use of cars and trucks as they try to deal with the cost of the carbon emissions from their vehicles.

The revised budgets included $4 billion for public transportation and $1 billion for mass transit, according to the New York Department of Transportation.

While the federal government will continue to spend a large portion of its money to reduce emissions, other parts of the country will have to spend less, according the New Jersey Department of Environmental Protection.

Gas prices rose across the nation.

The cost of gasoline in Texas, where the state is a major refinery, jumped 4.6 percent Thursday, to $3.49 a gallon.

The price in New Mexico, where there is a refinery in Monterrey, rose 2.6 cent to a new high of $2 a gallon, according with AAA of Texas.

Gas prices in Iowa climbed 2.7 percent Thursday to $4.26 a gallon while prices in Washington, D.C., jumped 2.8 percent to $5.10 a gallon for a new record high.

In Houston, the average price of a gallon rose 3.6% to $12.40.

In Oklahoma, the cost rose 3 percent to a record $11.20 a gallon as the state ramped up its refinery shutdowns.

A spokeswoman for AAA of Oklahoma said that while there is still a lot of work to be done, the refinery shutdown in Oklahoma will end soon and the state should have its oil refineries operating at full capacity.

As more refineries close, the price of oil has remained relatively stable in the United States, said John Lott, a senior vice president at AAA.

The oil price for March delivery, however, rose 8 cents to about $52.30 a barrel.

Oil prices have dropped in the past week.

The benchmark U..

S.-traded Brent crude oil, which is a benchmark for prices, lost 2.9 cents to settle at $54.88 a barrel Thursday on news that the Organization of the Petroleum Exporting Countries is planning to increase production by 10 percent.

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