UPDATE 1-US weeky gasoline price rises another 7 cents-Govt

(Repeats, fixes typo in headline) (Adds city gasoline prices, diesel fuel costs)

By Tom Doggett

WASHINGTON, May 18 (Reuters) - U.S. drivers faced soaring gasoline prices for the second week in a row, with the latest pump cost up 7 cents over the last week to $2.31 a gallon, the Energy Department said on Monday.

The national price for regular unleaded gasoline has jumped 23 cents in the last two weeks, about the same amount that it rose from late January to early this month.

The pump price was still down $1.48 from a year ago, the department's Energy Information Administration said in its weekly survey of service stations.

Gasoline prices are rising due to higher crude oil costs, as market traders believe petroleum demand will strengthen now that the U.S. economy shows some signs of recovery.

The jump in pump prices came even though gasoline demand over the last four weeks declined about 1 percent from a year ago and crude crude oil inventories are up 55 million barrels.

The EIA found the West Coast had the most expensive gasoline at $2.46 a gallon, up 9 cents from last week. By city, Chicago had the highest price at $2.57, up 5 cents.

The Gulf Coast states had the lowest regional price at $2.21 a gallon, up 8 cents. Houston had the cheapest city pump price at $2.18, up 7 cents.