Factors far and near push gas over $3

The Spokane area hit a new milestone Wednesday – an average gasoline price of more than $3 a gallon.

And it’s not likely to dip much below that figure anytime soon.

AAA reported a local average of $3.002 per gallon of regular unleaded, up from $2.999 on July 4.

Drivers were paying as much as $3.05 per gallon of regular unleaded at some Spokane stations.

The Coeur d’Alene-area average Wednesday was $2.889 a gallon.

International unrest, a recent 3-cent-a-gallon Washington state gas tax increase and U.S. refinery problems all contribute to the rising price trend, said AAA Washington/Inland spokesman Dave Overstreet.

The price of oil has risen to more than $74 a barrel, Overstreet said. Prices were $69 to $70 a barrel not long ago, he said.

“We have all the geopolitical stuff going on that tends to make the market folks nervous,” Overstreet said, highlighting tension over major oil producer Iran’s nuclear program as a key factor.

The hurricane season adds to worries about impacts on future oil supplies because Gulf Coast production could be damaged like it was last year.

One thing not affecting fuel prices: driver behavior. Americans are driving as much and as fast as ever.

Drivers could change prices, Overstreet said.

“If overall demand for gasoline is reduced significantly, it’s going to drive down the price of gasoline.”