California: Gasoline prices in state hit record, continue to climb or else

www.dailynews.com209541220774,00.html 3/5/2003 By Gregory J. Wilcox Staff Writer

The average price of a gallon of regular gasoline hit $2.036 Tuesday -- a record high price in California -- and industry experts said there was no relief in sight.

Tuesday's price barely beat the old record of $2.034 reached on May 15, 2001, according to the Automobile Club of Southern California.

Prices were just below the record in Southern California but were as high as $2.188 a gallon in the San Francisco Bay Area.

Regular fuel prices have soared 67.8 cents a gallon in the past 12 months. In some cases, the price spike has been rapid. For example, the state average climbed 3.2 cents a gallon from Monday to Tuesday.

Prices varied widely across California, with most of Southern California still below record levels, according to the Auto Club survey.

In the Los Angeles area, the price of regular self-serve averaged $2.006, 3 cents below the record. In Orange County, it was $2.022, just 1.8 cents shy of the record $2.04.

However, drivers in San Francisco paid a record $2.188; in Sacramento, gas prices hit a record $2.044, and in San Diego they hit a record $2.039.

Los Angeles-area drivers could find prices in record territory by week's end, said Auto Club spokesman Jeff Spring.

The question now is: how much higher -- and how much longer -- will prices rise?

"Who knows?" said Spring. "There is a lot of speculation going on, but some of the (price) underpinning is based on real facts."

The American Petroleum Institute, an industry trade group, notes that many factors are contributing to the high pump prices. A barrel of crude oil is trading near a two-year high; turmoil in Venezuela interrupted supply; there is uncertainty in the marker over war with Iraq; and it's been bitterly cold in the Northeast and Midwest. The latter means that, in some cases, heating oil production will be stepped up, which will cut into gasoline supplies.

The API also noted that the price of barrel of crude oil was in the high $30 range versus $18 a barrel a year ago.

In California, a seasonal change is also taking place as refiners switch from a winter to summer blend, which will now contain ethanol.

Also, this is the time of year that some refiners shut down part of their production lines for maintenance, said the California Energy Commission, and this could cut into supplies.

At the present time, "a couple" of refiners are this mode, but the state cannot divulge their names, said commission spokesman Rob Schlichting.

"Those are planned events, so they boosted their inventories to get ready for that. But supplies are a little tighter than we would like them to be," he said.

Schlichting also notes that the Auto Club price survey tends to be on the high side because it does not capture some low price outlets that do not accept credit cards.

The commission's survey for the week ending Monday found regular gasoline averaging $2.01 a gallon, the highest since it began in 1996.

And Schlichting agreed with the API assessment that, when adjusted for inflation, gasoline is a relative bargain.

For example, in 1981, the nation's motorists paid an average of $1.35 for a gallon of gas. In today's market, that would equal $2.70.

DRIVING FOR A BARGAIN

Here are some tips for driving around the record high gas price.

Shop Around: Follow the advice of Smokey Robinson and the Miracles who sang, "My Momma told me, you better shop around."

Knock off five to 10 cents a gallon or more by looking for the cheapest gasoline station near you. And despite advertising, all gasoline is pretty much the same.

Develop Habits: Accelerate gently but steadily, as NASCAR-style starts can decrease mileage by up to 12 percent. Try to avoid traffic jams, and use the radio to find alternate routes around congested areas. On the highway, use cruise control, since it saves fuel by maintaining a steady speed.

Slow Down: Fuel economy decreases as speed increases. For every mile per hour that you drive above 55 mph, a vehicle loses about 1 percent in fuel economy.

No Idle Time: Idling an engine equals zero miles per gallon. If you are not in a traffic lane and are going to be stopped for more than 30 seconds, turn off the engine. Restarting uses less fuel.

Chill Out. Turn off the air conditioner and let flow-through ventilation cool the car.

Slim Down: Shed excess weight like luggage racks and clean out the trunk. On average, each 100 pounds of needles weight reduces mileage by up to a half-mile per gallon.

Source: California Energy Commission