Questions arise about gasoline price increase

The middle of winter feels more like the heart of summer at gasoline stations nationwide, as fuel prices surged past $2 a gallon in some places and motorists grumbled about being gouged.

Nationally, the average retail price of regular unleaded fuel has risen 56 cents since the beginning of the year to $1.66 a gallon. Meanwhile, wholesale gasoline prices have increased only 14 cents over the same period of time. That disparity is the source of ire for much of the public, while others accept high gasoline prices as a consequence of war rhetoric from the Bush administration.

In Lawrence, the average price of gasoline is $1.64 per gallon compared to $1.07 a year ago, according to a daily survey conducted by AAA. A month ago the price was $1.39.

Agriculture

Corn crop predicted to set record yield

If planting goes well and the weather is good, farmers could see a record corn crop this year, meaning lower prices, the Agriculture Department’s chief economist said Thursday.

Keith Collins said corn production was expected to be 10.3 billion bushels this year, up from the 9 billion bushels grown last year. A record corn crop of 10.1 billion bushels was grown in 1994.

Collins also predicted the wheat crop would be 2.07 billion bushels, an increase from the 1.95 billion grown last year. Soybean production is projected at 2.82 billion bushels, compared to last year’s 2.75 billion bushels.

Farmers probably will see crop prices drop because “a rebound in yields and strong competition from traditional and newer competitors will likely cause a pull back in prices,” Collins said at a conference on the future of agriculture.

Telecommunications

Sprint, BellSouth suit assigned to new court

BellSouth’s appeal of a judge’s decision to limit the scope of arbitration in the dispute over its No. 2 executive with rival Sprint has been transferred to the Georgia Supreme Court.

The Court of Appeals said in a three-page order Thursday that the state’s highest court has jurisdiction over the appeal, which involves the fight over BellSouth vice chairman Gary Forsee, who wants to take the top job at Sprint. Forsee signed a noncompete agreement that BellSouth officials are seeking to enforce. No date has been set for the Georgia Supreme Court to hear the case.