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Pain at pump only a start

NEW YORK - The price of oil has reached $100 a barrel for the first time, the result of growing demand from increasingly industrialized nations like China and India and fears that there just won't be enough oil to go around. Political problems in oil-producing countries and regions have also helped send crude to new highs.

A look, in question and answer form, at the effect that record high crude prices is likely to have on consumers and the economy.

How will $100 oil affect the prices I pay for energy?

Higher crude prices will almost certainly drive up the cost of refined products, although the gasoline pump may not be the first place consumers see prices rise.

"There are some immediate consequences. That's on the heating oil, diesel and jet fuel side," said Tom Kloza, publisher and chief oil analyst at the Oil Price Information Service.

The Energy Department predicted gasoline prices will average $3.11 a gallon at the pump nationally and peak above $3.40 in the spring.What are we paying now for gasoline in the Tampa Bay area?

The average price for regular unleaded gas was $3.05 on Wednesday, according to AAA's Daily Fuel Gauge report. That's up from $2.31 a year ago.

How quickly will a rise in crude oil prices be seen at the pump?

Probably within days. Kevin Bakewell, vice president of public and government affairs with AAA Auto Club South in Tampa, said that even though gas stations may be selling lower-priced inventory from their tanks, when crude prices rise, retail prices quickly follow.

How will the price of oil affect what I pay for other goods and services?

"These higher prices will flow throughout the economy," said Tim Evans, an energy analyst at Citigroup Inc. "The more difficult question would be to find a product that does not have an energy component."

Higher diesel prices will drive up the cost of most goods transported on highways. Those shipping costs will almost certainly be passed on to consumers.

Evans said consumers likely will also see higher fuel surcharges on airline tickets, as well as higher package delivery costs.

Products made from petroleum, such as plastic and certain types of fertilizer, are also likely to be more expensive, and that could push up the cost of food.

"Even the cheap, flimsy plastic caps for the top of our coffee cups will rise in cost," Evans said.

Times staff writer Kris Hundley contributed to this report.

[Last modified January 3, 2008, 01:18:45]