Nation paying more on average at the gas pump-Hampton Roads' prices leveling off
www.dailypress.com By Kimball Payne Daily Press
March 11, 2003 Skyrocketing pump prices in California sent the nation's average gasoline prices soaring, even as prices have leveled off for Hampton Roads motorists in the past two weeks.
Regular unleaded gasoline prices at self-service stations in Newport News, Norfolk and Virginia Beach have stayed around $1.59 a gallon since Feb. 25, according to AAA's daily fuel gauge report. But it is a different story out West, where refineries switched to production of gasoline with corn-based fuel additives, causing temporary shortages.
On Monday, AAA estimated an average price of $2.21 a gallon for regular unleaded in San Francisco, $2.08 a gallon in San Diego and $2.04 a gallon in Los Angeles.
The national average price per gallon, including taxes, was about $1.69 Monday, according to the AAA's report, which surveys more than 60,000 gas stations nationwide. The price is nearing the record $1.72 a gallon it recorded on May 15, 2001.
The easing of constant price hikes at the pump has been a big relief to local motorists, however. From Feb. 10 to Feb. 21 prices locally leaped 10 cents a gallon to an average unleaded price of $1.593. Fuel costs have budged only slightly lower since then to $1.585 a gallon.
"They're high, but they've been high," Hampton resident Carolyn Lockett, said Monday about the prices she's seen while refueling her new red Ford Expedition. "They're pretty much stable now. I used to drive an Escort, but now I'm in a big SUV, so it's a big difference." She added California's prices "make me feel good that I'm down here."
Analyst Trilby Lundburg said the increase of just over a nickel a gallon was nearly entirely due to California refineries switching over to corn-based additives from MTBE, an additive that is blamed for polluting drinking water after it leaked.
That change has temporarily cut the state's gas supply by 10 percent and helped drive up prices, Lundburg said.
AAA Mid-Atlantic officials said gas prices were high nationally because of the tension surrounding war against Iraq, Venezuela's ongoing political crisis which has curtailed their oil exports, and this year's cold winter which has created more demand for heating oil.
Gasoline prices are likely to remain high until the international crisis over Iraq is settled, Lundburg said.
Local fuel costs have eased a bit, experts said, because demand has softened as motorists are realizing the prices at the pump aren't going to plunge soon.
"Our hope is that the near-record highs are temporary, and there's no reason for gas prices not to go back down," said Deborah DeYoung, a AAA Mid-Atlantic spokeswoman in Fairfax.
San Francisco and Wailuku, Hawaii, recorded the highest price on the AAA survey at $2.21 per gallon. Georgia registered both of the lowest prices nationally, with Atlanta averaging $1.52 and Macon $1.51.
The national average price for mid-grade gasoline, including taxes, was $1.79 and $1.86 for premium.
The Associated Press contributed to this report..
Kimball Payne can be reached at 247-4765 or by email at kpayne@dailypress.com