GAS SURVEY: Average gasoline price climbs to record level

By GENE ZALESKI, T&D Staff Writer

All time record level gasoline prices averaging roughly $1.52 a gallon in Orangeburg and throughout The Times and Democrat Region have arrived. And the general consensus among the experts is they are here to stay, at least through the immediate future. "The threat (of war) is causing an artificial increase up the ladder," said Brad McCully, Bamberg's Brabham Oil Co. spokesman. "The futures traders have driven up the cost in anticipation of future things that no one knows will happen." The uncertainty of the situation, McCully said, has been the primary factor in the high prices. Gasoline supply has actually improved as less and less people are traveling due to a combination of both high prices and heavy snowfall in the Northeast.

McCully said the only expectations on seeing any greater increase is if the United States goes to war, and then the Orangeburg area may see prices in the $1.70 range. "This would be extremely short term," McCully said. How about prices for the summer driving season? "It depends where the war falls in," McCully said. "It is hard to put a finger on ... how the disruption will be in the supply line during the war. Some stuff we just don't know. We just have to wait and see." While prices have shot up an average of 8 cents a gallon over the past two weeks, the week of Feb. 12-19, actually saw prices level out. In Wednesday's survey of selected stations throughout The T&D Region, the least-expensive gasoline found sold for $1.479 at the Shell E-Z Shop at U.S. 21 and Highway 22, near Interstate 26 exit 139. At Santee, gasoline sold for $1.489 a gallon for regular unleaded at the Horizon E-Z Shop on Highway 6. In Orangeburg, the least-expensive sold at the Hot Spot on John C. Calhoun Drive for $1.499. Fogle's Piggly Wiggly in Neeses, Holly Hill's Amoco Food Mart on Old State Road also sold for $1.499. The most expensive gasoline of stations surveyed sold in Bamberg and Branchville for $1.579. AAA Carolinas, an affiliate of the American Automobile Association, reported the gasoline price average of $1.591 is the highest recorded by the organization over the past 20 years. The previous record was set in May 2001 when the average price in the state was $1.535 primarily due to reformulated gasoline. And David Parsons, AAA Carolinas president, does not see this changing any time in the near future. "We expect prices to continue to increase and set new records," Parsons said. "We urge everyone to search your area for the lowest pump price, look for ways to cut down on fuel consumption and keep your vehicle properly maintained to increase its fuel economy." As prices continue to spike -- since the middle of January the national average has increased 14.7 cents to $1.618 per gallon -- AAA officials continue to urge gasoline wholesalers and retailers to show restraint in the pricing of their products, and AAA has already cautioned the industry not to take advantage of the nation's heightened terrorist alert status. The organization has stood by the claim that while the nation continues to experience the loss of oil and gasoline imports from Venezuela and recovers from the recent cold snap, nothing justifies the dramatic increase in gasoline prices experienced across the states. Tom Crosby, AAA Carolinas vice president of communications, said while prices here appear to be rising quickly, it is a case of many "taking profits early" before things get much worse. Evidence of price-gouging has not been seen. "They (prices) are awfully high," Crosby said, citing that they could continue to inch upward as long as the Venezuelan situation remains chaotic, the Organization of Petroleum Exporting Countries continues with current production output and war jitters remain. Assessing how high they will in fact reach, Crosby said it is too premature to speculate on a peak. "Once we engage in war ... it will shoot up and then take some time to go back to normal," Crosby said. Traders are feeling the jitters as well. Crude oil futures settled Tuesday at a fresh 29-month high, up 16 cents to $36.96 a barrel on the New York Mercantile Exchange, marking the fifth increase in as many days. "I don't believe crude's move to the upside is over yet," said Peter Beutel, an analyst for Cameron Hanover Inc. in Connecticut. "Where the price goes is less a matter of any absolute number than a matter of time. The longer we wait, the longer we may keep seeing prices going up. It's a bubble that keeps on expanding until we see something that's going to pop it." As crude reacts to ongoing concerns about tight oil supplies in the event of a war with Iraq, the bearish effects of a Northeast snowstorm drove gasoline lower. Since many people won't be driving in the poor weather, gasoline use is expected to be weak, one analyst said. The March gasoline contract fell 2.78 cents to settle at 99.45 cents a gallon, while March heating oil rose 0.47 cent to settle at $1.0654 cents a gallon. As The T&D continues its weekly gas survey, we encourage readers to get involved. If you know of a gasoline price consistently lower than those in our survey, let us know by e-mail at news@timesanddemocrat.com, by fax at 803-533-5595 or by phone at 803-534-1060. The prices must be consistently low for inclusion in the survey. Here are some of the prices found in the survey conducted Wednesday, Feb. 19: Orangeburg -- Hot Spot on Calhoun Drive: regular unleaded, $1.499. -- Horizon E-Z Shop, Old St. Matthews Road: regular unleaded, $1.519. -- Li'l Cricket at U.S. 301 and Highway 70: regular unleaded, $1.519. -- Henry's on U.S. 301: regular unleaded, $1.519. -- Dodges Store at U.S. 301 and Cannon Bridge Road: regular unleaded, $1.519. -- Horizon E-Z Shop, Shillings Bridge Road: regular unleaded, $1.519. -- Gazbah Exxon, Chestnut and Ellis: regular unleaded, $1.539. -- Short Stop, Magnolia and U.S. 178: regular unleaded, $1.539. -- Big D's Shell, Magnolia Street and U.S. 178: regular unleaded, $1.539. -- Citgo, Charleston Highway: regular unleaded, $1.549. -- Speedway, at U.S. 21 and the U.S. 21 Bypass: regular unleaded, $1.549. Neeses -- Fogle's Piggly Wiggly, Highway 4 and U.S. 321: regular unleaded, $1.499. Bamberg -- 3-Way Food Mart, Main Highway: regular unleaded, $1.579. -- Horizon E-Z Shop West, U.S. 78 West: regular unleaded, $1.579. -- Horizon E-Z Shop on U.S. 301 South: regular unleaded, $1.579. Branchville -- Horizon E-Z Shop, Freedom Road: regular unleaded, $1.579. Holly Hill -- Amoco Food Mart, Old State Road: regular unleaded, $1.499. Santee -- Horizon E-Z Shop, Highway 6: regular unleaded, $1.489. St. George -- Fast Point Food Store, on Highway 78 and Sears Street: regular unleaded, $1.529. St. Matthews -- Amoco, Highway 6: regular unleaded, $1.529. T&D Staff Writer Gene Zaleski can be reached by e-mail at gzaleski@timesanddemocrat.com or by phone at 803-533-5551.