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Prices Headed Higher at the Pump

Kept down by the recent debt crisis in the European Union, prices at the pump here in the United States are forecasted to increase in the near future.

Prices rose 0.3 cent to a national average of $2.737 per gallon on Monday, according to AAA, Wright Express and Oil Price Information Service. Prices have risen 3.9 cents in the past week and are 7.5 cents below levels of a month ago. Pump prices are 4.4 cents higher than a year ago.

Oil prices continued to surge Monday, after China moved to end its two-year peg to the dollar. Crude rose $1.32 to $78.50 a barrel on the New York Mercantile Exchange. Traders anticipate a stronger yuan will make dollar-based commodities such as oil cheaper in China and bolster demand in the world’s second biggest market for oil. The policy shift also suggests China officials believe their economy is growing enough to absorb any slowdown in exports that a stronger currency may cause.

Of course, these moves will put additional financial strain on average consumers and fleet managers alike.

We will keep you informed as the EIA releases its next report on retail oil pricing next week.

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