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Nationally, production is down and demand is up compared to last year. In addition, many regions of the country are having trouble getting sufficient supplies of ethanol, which is used in new formulas for gas. Uncertainty about supply has lifted gasoline to near-record prices on the spot market and that filters down to the neighborhood gas pump.
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We're in the time of year when steep price increases are common, but this year prices are being boosted by speculation about whether there will be sufficient gasoline supplies for later in the year. It may be several weeks before a clear picture develops on the nation's gasoline production, but in the meantime, prices could climb to near $3 per gallon.