Gas prices in the Philadelphia hit an average of $3 today, the highest level this year and the highest since 2008, when the average hit $4.16 a gallon, according to AAA Mid-Atlantic.
That overnight increase, for Southeastern Pennsylvania, was by 1 cent, the auto club said.
South Jersey's gas average was unchanged, at $2.82, but that remains the highest for 2010. The highest average recorded for South Jersey was $4, also in 2008.
The national average remained at $2.89 today. That's not the highest for the year; May saw $2.93. And when prices here were in the $4 range, the national average hit a high of $4.11, in 2008.
Philly and its four surrounding counties saw no change in the diesel average, which stood at $3.41.
The diesel average was up a penny in South Jersey, to $3.08, and in the nation overall, to $3.20.
Meanwhile, oil prices fell below $82 a barrel as fears of slower Chinese growth and a stronger dollar offset the impact of a report showing that U.S. crude supplies unexpectedly plunged last week.
Benchmark oil for December delivery was down 35 cents to $81.99 a barrel by early afternoon in Europe in electronic trading on the New York Mercantile Exchange. The contract fell $2.52, or 3 percent, to settle at $82.34 on Tuesday.
Crude inventories fell 7.7 million barrels last week, the American Petroleum Institute said late Tuesday, suggesting that demand for fuel is rising. Analysts surveyed by Platts, the energy information arm of McGraw-Hill Cos, had expected an increase of 1.2 million barrels. The API also said gasoline stocks dropped while distillates rose.
The Energy Department's Energy Information Administration reports its weekly supply data later Wednesday.
Last week's crude inventory drop was the biggest for that week since 1982, according to energy consultant the Schork Report, and follows a 7.4 million barrel draw the previous week.
But fears that Chinese measures to contain inflation will undermine economic growth and oil demand are weighing on prices. China is the world's largest energy consumer.
China's government announced food subsidies for poor families Wednesday as it tries to cool a double-digit surge in prices that communist leaders worry might stir unrest. A cooling economy would result in less demand for energy.
Speculation that the European Union may have to finance a bailout of Ireland's debt is also hurting trader optimism as is the dollar, which has strengthened to a six-week high.
"A financial troika consisting of inflation jitters over China, renewed European debt woes triggered by Ireland and an ensuing stronger dollar are the most likely reasons behind the precipitous drop," JCB Energy said in a research note. "But it also appears that the oil market was simply overbought in recent weeks."
Oil and other commodities are priced in dollars, and when the dollar strengthens, they become less affordable for overseas portfolio managers, who make purchases in euros, yen and pounds.
In other Nymex trading in December contracts, heating oil was down 7 cents at $2.23 a gallon and gasoline rose 0.2 cents to $2.16 a gallon. Natural gas rose 2.5 cents to $3.84 per 1,000 cubic feet.
In London, Brent crude lost 17 cents to $84.56 a barrel on the ICE Futures exchange.