High prices don’t slow demand for gasoline

Despite near record-high gasoline prices, U.S. motorists continue to increase consumption and, with supplies tight, that is helping to keep fuel costs up.

The Energy Department reported Monday that nationwide retail gasoline prices averaged $1.72 per gallon last week. Meanwhile, the price of oil surged to $37.44 per barrel on futures markets, the highest level in more than a year.

The most recent statistics from the Department of Energy show that gasoline demand has been roughly 3.7 percent higher than last year over the past four weeks.

Analysts attribute this increase to improving economic conditions, rising population and growing consumer preference for gas-guzzling SUVs.

Economy

Industrial production posts broad gains

Big industry production rose by a strong 0.7 percent in February, an encouraging sign that the nation’s manufacturers may be getting a stronger grip on their own recovery.

The increase in output at the nation’s factories, mines and utilities came after a 0.8 percent jump in activity in January, the Federal Reserve reported Monday.

Last month’s industrial production performance was even better than the 0.4 percent increase that some economists were forecasting. Gains were widespread in February, with production rising for automotive products, home electronics, business equipment, machinery, food products and chemicals.

Kansas City, Mo.

Butler merger passes regulatory muster

An Australian steel company’s plan to buy Butler Manufacturing Co. has cleared a U.S. regulatory hurdle.

Butler Manufacturing, a Kansas City, Mo.-based maker of prefabricated buildings, announced Monday that regulators had allowed an early ending to a waiting period required under antitrust law.

Bluescope Steel Ltd., of Melbourne, Australia, announced in February it had offered to buy Butler Manufacturing for $22.50 a share and assume debt of $60 million, putting the deal’s value at $204 million.

Energy

Aquila finishes deal to sell power plants

Aquila Inc. said Monday it had completed the sale of 12 power plants to Teton Power Funding.

The plants — in California, Florida, Georgia, Maine, New York, Washington and Jamaica — are part of Aquila’s residual energy trading business. The Kansas City, Mo.-based energy company announced in 2002 that it would exit that business and return to its roots as a domestic utility.

Aquila is Lawrence’s natural gas provider.