Gasoline prices rise in the Central Valley

Gasoline prices are on the rise in the Central Valley and the state, according to AAA of Northern California's monthly gas price report.

The average cost of a gallon of gas in Merced rose 16 cents last month to $3.04.

The statewide average price is $3.07, and nationally it's $2.76.

AAA analysts attribute the increase to optimism about the short-term health of the economy, expectations that demand will rise as the weather warms up, and refineries switching to a summer blend of fuel.