Joey McDonald is casting a wary eye at the gas pump these days.

The 22-year-old Lawrence resident commutes twice a week to Johnson County Community College, and the rising price of gasoline is taking its toll.

“It’s getting to the point where you have to start cutting back on some things — like movies,” McDonald said.

Gasoline prices are on the rise across America. The national average price shot up 4 cents a gallon in the past week, to about $1.69 per gallon, with pumps in California’s biggest cities topping $2 for the first time since September, the government said Monday.

While customers are paying more than $1.60 a gallon in Lawrence, the average price is $1.64 in Baltimore, $1.72 in Bloomington, Ind., and $1.89 in Las Vegas, according to AAA’s daily fuel gauge report.

Where or when the price increases will stop — some analysts say U.S. consumers could be paying close to $3 a gallon by this summer — nobody knows.

“We’ve had two months in a row now here in Kansas where we’ve seen gas prices increase,” said Jim Hanni, spokesman with AAA Kansas.

Statewide, there has been an average increase of 7 cents a gallon in the past month, bringing the average price to $1.60, AAA said. The average price for a gallon of unleaded regular in Lawrence is a little more than $1.62, according to the AAA survey. A Journal-World survey found some local stations have pushed the price to $1.65.

Increasing demand for oil and petroleum products, combined with a cut in production by members of the Organization of the Petroleum Exporting Countries, are being blamed for the spike in prices.

Although gas prices are on the rise, Bernadette Jacobs, Lawrence, said she hadn't really noticed the increase. Jacobs was filling her car tank Monday at the Shamrock station at 501 W. Ninth St. The average price of a gallon of gas in Lawrence is now .62, up from .57 a month ago.

Demand has been rising, Hanni said, because winter has been colder this year than last throughout most of the country. That means more crude oil is being converted to heating fuels than anticipated, leaving less for production of gasoline.

A recovering U.S. economy and suddenly booming Chinese economy also are boosting demand.

“Some analysts had pointed to a potential downturn (in prices) this spring, but it doesn’t look like that is going to be the case,” Hanni said.

In fact, some in the industry are suggesting prices could reach $3 a gallon in some parts of the country this summer. Fred Rozell, director of retail pricing with Lakewood, N.J.,-based Oil Price Information Service, said the increase “is not only possible, it’s probable.”

But those whose livelihoods are tied to travel and fuel prices aren’t ready to hit the panic button.

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Bob Osborn, Lawrence branch manager for Laidlaw Inc., is used to hearing “the sky is falling” rhetoric each year about gasoline prices. Laidlaw contracts with the Lawrence school district to provide bus transportation.

Because his company’s contract with the district has a dollar cap on it, when a gallon of gasoline goes above a certain price, the school district picks up the additional cost. That cap, with tax, is $1.50, Osborn said.

At Lawrence Municipal Airport, fuel prices also have been increasing for jet and piston-driven aircraft, said Lloyd Hetrick, of Hetrick Air Services, the firm that oversees daily operations at the airport.

“Typically, what you see at the gas pump also is pretty closely reflected out here,” Hetrick said.

Airline companies usually try to avoid taking on full loads of fuel at airports where prices are higher, Hetrick said. They fuel up at less expensive airports along their route. Owners of planes stationed at the airport will feel the pinch of high prices more, he said.

Lawrence city officials also are keeping an eye on gasoline prices. Each year, city staff uses the best information it has available to estimate fuel costs for the coming budget year, said Assistant City Manager Debbie Van Saun. So far, there haven’t been any special measures taken or planned by City Hall to deal with gasoline prices, she said.

“We haven’t been alerted that there is a concern we won’t meet our budget in that area, but this is only February, and we’re going to keep track of it as we do every year,” Van Saun said. “If there is a concern, hopefully we’ll know early on and can take whatever steps are necessary.”