www.zwire.com STEVE WHITWORTH, The Telegraph March 05, 2003

Gasoline prices got fatter on Fat Tuesday, jumping by as much as 12 cents a gallon at many area stations. "I don’t know what’s causing that to occur," said Mike Right, veteran analyst with the AAA Auto Club of Missouri. When told about the 12-cent increases reported Tuesday in the River Bend, Right said he had received similar reports from the Missouri side of the St. Louis metropolitan area. "Up until this morning, we had seen a fairly consistent -- although modest -- decrease almost on a daily basis in St. Louis, beginning Feb. 14, when we saw gas prices hit $1.70 a gallon," Right said. "As of this morning, prices had come down to $1.55 per gallon, a 15-cent per-gallon drop, with only one day showing an increase during that period. I guess that was short-lived." Higher prices were posted Tuesday at gas stations around Alton, including the QuikTrip in Godfrey, where the price went up by 12 cents per gallon for self-service, unleaded regular gasoline to $1.67. The increase was the same at the Piasa Pantry on Illinois Route 3 in Hartford, where the price started the day at $1.55 and ended at $1.67. The manager of the Piasa Pantry, who gave her name only as Vicki, said few customers had complained about the increase. "Everybody’s got their own views about it," she said. "The price has been up for so long, I think everybody is getting complacent about it." An employee at the Amoco station at 1660 East Broadway in Alton said it had raised prices by 5 cents a gallon Tuesday, also boosting its price for regular unleaded to $1.67 per gallon. On the Missouri side of the St. Louis metro area, the average price Monday for a gallon of self-service, regular unleaded gas, as shown by the Auto Club’s Daily Fuel Gauge Report, was $1.57, Right said. He said that price actually had fallen in Tuesday morning’s AAA survey to $1.55, but a survey later Tuesday of 15 area stations showed the prices going up as the day went on. "Of the 15 stations we track, one went up 12 cents a gallon," Right said. "There will be a majority of them that will go up by double digits, maybe 10 cents or 11 cents, or maybe by 8 cents. Sooner or later, the overall average is going to go north." Right noted that wholesale gasoline prices have increased recently. "Supplies are not what they should be," he said. "Crude oil prices are crazy, going up and down. Right now, they’re at $36 a barrel. "Wholesale gasoline is above $1 a gallon. Things are not good." Right noted oil supplies have been falling, with the labor crisis in Venezuela contributing to the decrease, as well as a cutback in production of 2 million barrels announced last year by the OPEC nations. "We’re seeing a continuing increase in demand for the product and a continuing decrease in availability," he said. "We can expect prices to continue to rise." The political situation in the Middle East, particularly the showdown between the United States and Iraq, also is having an effect on gas prices, Right said. "Analysts suggest that $5 to $10 of the cost of a barrel of oil currently is directly attributable to anxiety over what’s going on in the Middle East," he said. "Unfortunately, oil is a speculative commodity." swhit6@hotmail.com

www.sfgate.com Verne Kopytoff, Chronicle Staff Writer Wednesday, March 5, 2003

Gasoline prices climbed to record highs across the Bay Area Tuesday, topped by San Francisco, where regular unleaded fuel cost an average of $2.19 a gallon, a new survey showed.

The milestone, based on daily data, puts a big exclamation point on three straight months of increasing costs at the pump. Though unaware of Tuesday's historical significance, drivers filling their cars knew one thing: They were paying too much.

"It's ridiculous," said Sandra Cerrigan, a sales assistant for an investment bank who had just paid $2.23 a gallon to top off the tank of her Land Rover at a Chevron station in San Francisco's South of Market neighborhood. "We're getting gouged."

Gas prices, which had been just shy of record levels since last week, leaped several cents overnight, according to a daily survey by AAA of Northern California. It was enough to break records in Bay Area cities and in California as a whole.

In addition to San Francisco, historic highs were reached in Oakland, where regular averaged $2.09, AAA said. In San Jose, the new peak was $2.08. Vallejo's was $2.04. Statewide, the new high was $2.04.

California's previous record was $2.03, set May 13, 2001, according to AAA. San Francisco's high, on a monthly basis, was in June 2001 at $2.17.

Tensions over a potential war in Iraq, cold weather on the East Coast and a strike in Venezuela are blamed for the soaring gas prices. They have pushed the cost of crude oil to $36.70 a barrel, just shy of a 12-year high reached last week.

Sean Comey, a spokesman for AAA, said gas prices may go even higher. After all, winter is usually among the cheapest times to fill up your car, he said.

"Typically, March is the beginning of what we consider to be the summer driving season," Comey said. "Prices usually head up from here."

Analysts said a U.S. attack on Iraq would almost certainly cause prices to rise, at least temporarily. They point to the Gulf War in 1991 as a model.

During the war, oil prices jumped for a couple of days until victory seemed assured. At that point, they plummeted.

When taking into account inflation, current gas prices aren't actually as high as they seem. A gallon of gas today would have to cost $2.70 to surpass what drivers paid in 1981.

That was after President Ronald Reagan deregulated gas prices. Pump prices shot up briefly but then returned to earth.

Nationally, gas prices averaged $1.68 Tuesday, according to AAA. The record is $1.72, set on May 15, 2001.

CALIFORNIA'S SPECIAL BLEND

California's gas is usually more expensive than most states. One reason is that fuel taxes here are higher than elsewhere.

But another factor has to do with California's special blend of lower-smog fuel. Refineries in the state produce just enough gas to satisfy the state's demand.

That increases the likelihood of shortages if a refinery catches fire or undergoes maintenance.

Refineries are switching from making winter gas to a different blend used during the summer to help reduce smog, which modestly curtails production.

San Francisco, in particular, has some of the Bay Area's most expensive gas.

The explanation given by station owners and analysts is the high cost of doing business in the city and the lack of highly profitable mini-marts.

The rise in gas prices has raised concerns among some politicians and consumers about collusion in the oil industry. A handful of U.S. senators and state officials have asked the Federal Trade Commission to investigate the matter.

A spokesman from the FTC declined to comment.

Sen. Barbara Boxer, D-Calif., has asked her staff to look into the issue of high gas prices but has not gone so far as to request an investigation by the FTC, according to her spokesman David Sandretti. He said that she'll announce something about gas prices within the next day or two.

Susan Hahn, a spokeswoman for the American Petroleum Institute, an oil industry trade group, insisted that the higher prices aren't a consequence of profiteering. She said that they are determined largely by crude oil prices and other factors.

"Various versions of this type of concern have been voiced many times," Hahn said. "And there have been many investigations at various levels of government, and they always come back showing that the No. 1 one thing that affects the price of gasoline is the basic factors of supply and demand."

But many consumers are convinced otherwise. At the SoMa Chevron station, drivers offered explanations ranging from an effort by President Bush to enrich his oil industry friends to manipulation by the service stations.

Virtually all the drivers complained that they have no alternative. But most also said that they try, within reason, to shop around for the lowest price.

SHOPPING AROUND

Susan Watson, a state Health Services Department worker from Oakland, said she tries to buy from some cheaper service stations near her gym in San Leandro. This time, however, she had no choice, because her motorcycle was running close to empty.

"It cost $10 to fill up my tank, and that's for a motorcycle," Watson said. "I used to pay $6."

Watson, who also owns a car, said she is thinking of buying a hybrid car, which runs on a combination of gas and electricity, to save money in the future.

Sam Van Vactor, president of Energy Insight, an energy consulting and research firm in Portland, Ore., said that gas prices are high enough that some consumers may indeed change their driving habits. They may ultimately buy more fuel-efficient cars or take public transportation.

But Van Vactor added that it takes time.

"Typically, people use credit cards," he said. "They have to wait until the bills start to pile up."

E-mail Verne Kopytoff at vkopytoff@sfchronicle.com

www.vheadline.com Posted: Wednesday, March 05, 2003 By: Robert Rudnicki

According to opposition leader and Miranda State Governor Enrique Mendoza, Coordinadora Democratica (CD) is set for a shake up of its image and strategies so that it can better address the political situation following the failed 2-month opposition work stoppage.

• The change is scheduled to occur next week after Carnival celebrations have drawn to a close.

The focus of this revamp will be on preserving unity "at any cost" and will see the inclusion of new groups, parties and civil associations into the mix.

Although Mendoza refused to clarify exactly what form this new structure would take, he did say the opposition grouping would welcome new spokespersons. However, at this stage, the Miranda Governor says he doesn't think the time is right to be talking about a possible presidential candidate to challenge President Hugo Chavez Frias in any upcoming elections.

www.vheadline.com Posted: Wednesday, March 05, 2003 By: Robert Rudnicki

According to Coordinadora Democratica negotiator in the Organization of American States (OAS) led peace negotiations Timoteo Zambrano, the government is losing support from the international community and he says he believes that sooner or later it will be forced to accept an electoral solution to the current political stalemate. 

In Zamrano's opinion, the two events that have had the most significant effect on international opinion were the seizures of the Coca-Cola bottling plant and an Empresas Polar warehouse several weeks ago, along with President Hugo Chavez Frias' "primitive stance concerning globalization trends ... and non-intervention trends."

Zambrano insists "an electoral solution is unavoidable ... this year we are going to have elections."

www.vheadline.com Posted: Wednesday, March 05, 2003 By: Robert Rudnicki

According to the Venezuelan Federation of Chambers of Commerce & Industry (Fedecamaras) vice president Albis Munoz, many Venezuelan businesses will be forced to close due to their inability to buy raw materials from abroad.

Fedecamaras claims that the problem is being caused by currency controls imposed by the government around six weeks ago ... and the subsequent delay in restoring companies' ability to purchase foreign currencies.

"About 25% of Venezuelan companies are at risk," Munoz says, accusing the government of using the currency controls to punish businesses that supported the 2-month opposition-led work stoppage that fizzled out early last month.

The Fedecamaras vice president also insists that now is the time to preserve the few jobs that remain and not to punish opposition businessmen.