Gasoline prices hit record high in Oklahoma

OKLAHOMA CITY (AP) -- Gasoline prices, which have been on a steady climb since the first of the year, hit a record high on Tuesday in Oklahoma.<br/><br/>The price of a gallon of unleaded regular gasoline

Tuesday, May 4th 2004, 5:47 pm

By: News On 6

OKLAHOMA CITY (AP) -- Gasoline prices, which have been on a steady climb since the first of the year, hit a record high on Tuesday in Oklahoma.

The price of a gallon of unleaded regular gasoline averaged $1.73 across Oklahoma, slightly eclipsing the old record set in June of 2000, said Chuck Mai, spokesman for the Oklahoma division of the American Automobile Association.

The Oklahoma average was still considerably below the national average of $1.83 a gallon, according to the AAA survey. Gas prices reached a record high across the nation weeks ago.

The price of premium gas in Oklahoma was $1.89 a gallon, compared to $2.02 a gallon nationally.

"The market is really running scared right now, and it's not in search of a direction," said Chuck Mai, spokesman for Oklahoma AAA. "It has found a direction and unfortunately it is up.

"It has been going up ever since the first of the year. And we are now seeing concerns on the supply side at the very time of increased demand brought on by the approaching summer driving season."

In Oklahoma City, the average price of regular was $1.71 a gallon, while Tulsa motorists were paying $1.76.

Mai said he did not expect prices to drop anytime soon.

"Possibly by the second or third week in June, once we see the effect of all the various factors on the price of gas and face that monster head on, then we may see some prices decline," he said.

State energy officials recently said the price of gas is still a bargain, when inflation is considered.

Energy Secretary David Fleischaker said gasoline is "underpriced" and that fact is proven because so many motorists are still choosing to drive SUV's and other gas-guzzling vehicles.

Mai said one analyst said the current price of gas is 40 percent less than it was 20 years ago, when inflation is taken into account.

"If you look at other commodities and other modes of transportation, a gallon of gas is still a bargain," Mai said. "But that's a difficult argument to swallow when you are looking at record prices."