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Gas prices rise for first time since early Sept.

NEW YORK -- Average retail gasoline prices rose for the first time since early September, lifted by higher crude oil prices and the return of refining capacity and consumer demand following hurricanes Katrina and Rita, an industry analyst said yesterday. The US average for self-serve regular unleaded was $2.21 per gallon, up more than 8 cents per gallon in the past two weeks, according to the Lundberg survey of about 6,000 gas stations.

The upturn was the first since prices hit an all-time high of $3.01 per gallon Sept. 9. Until last week, the price of gasoline had fallen about 88 cents per gallon. ''Consumers had recoiled from higher prices briefly, but now gasoline demand is resuming its growth," said survey editor Trilby Lundberg. However, price increases are likely to be smaller for the rest of this year and they might not rise at all in some cities," she said. Price increases could range between 2 and 5 cents per gallon in some metropolitan areas, she forecast.

US crude oil slumped $1.93 to $58.06 a barrel Friday as dealers focused on swelling US crude stockpiles and forecasts that icy weather may give way to milder temperatures in the new year. But earlier in the week, US crude rose to a one-month peak of $61.90 after colder weather in the Northeast helped to pull prices up from a five-month low.

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