Gas prices surge in S. Texas, nation
By Adolfo Pesquera news.mysanantonio.com Express-News Business Writer Web Posted : 02/09/2003 12:00 AM
A threat of war, a cold winter and falling petroleum reserves have combined to push gasoline prices steadily upward for two months.
Rufus Francis pumps gas at a Diamond Shamrock station on Broadway. The cost of unleaded was $1.48 a gallon there Friday. Edward A. Ornelas/Express-News
By Friday morning, the average gasoline price in San Antonio was $1.45 a gallon, according to the AAA Texas Inc.'s Weekend Gas Watch index.
Many San Antonio locations had prices up to $1.52 a gallon for regular unleaded, but the average cost was the lowest in the state.
Prices have been climbing for a while, AAA spokeswoman Rose Rougeau said, but there was a noticeable spike immediately after Secretary of State Colin Powell's address to the United Nations.
"(Consumers) have seen 3- to 5-cent jumps overnight," Rougeau said. "I think they anticipated that they would see increases, but when they see such rapid increases over such a short time period, it surprises them."
Powell's presentation Wednesday about Iraq had an immediate effect on crude oil futures prices. West Texas Intermediate rose 75 cents a barrel on the New York Mercantile Exchange that day to close at $33.93 per barrel.
Jesus Martinez, manager of the Sunglo at 1127 S. St. Mary's St., said his station's unleaded went from $1.39 to $1.48 a gallon in a week.
"I'd say it's expensive," he said. "It's almost getting to $2 a gallon."
Despite the prices, customers' comments about it are no more emotional or common than their comments about the weather, said Khalid Qureshi, owner of the Citgo at 11917 Toepperwein Road.
"They say prices are high, (but) they pay for the gas," Qureshi said. "They know already the prices are high everywhere."
U.S. average retail prices for regular unleaded had risen for the eighth week in a row by Monday, increasing 5.4 cents per gallon to $1.52, according to the Energy Information Administration. It was the highest price in 17 months, and this week appears certain to push the average still higher.
War jitters have a lot to do with the latest spike, said Neil Gamson, economic forecaster at the Energy Information Administration.
But the lingering effects of Venezuela's oil strike and an unusually cold winter in the Northeast and Midwest made a bad situation worse.
"Even though Venezuela says they're starting to come back, there was a lot of crude lost during that time," Gamson said. "They can't come back that quickly."
Weather also is a factor, he said. During bouts of cold weather, refineries produce more heating oil than gasoline. Gasoline supplies drop, and the price goes up.
Prices probably will remain high, at least for the short term. The Energy Information Administration is projecting an annual increase in demand for gasoline and diesel fuels of 2.4 percent. Analysts had expected the increase to be just under 2 percent, but a projected surge in light truck and SUV sales could mean more demand for gasoline.
Meanwhile, Texans — a truck-happy bunch — can count their blessings.
Rougeau said, "Texas tends to be at the bottom of the scale," with an average gas price this week of $1.49 a gallon. Georgia was lower at $1.42, but California was at $1.77.