Gasoline price nears an all-time high

www.hometownannapolis.com By EARL KELLY, Staff Writer As gas prices soar toward all-time highs, the average driver is spending an extra $42 a month to fill up the tank, AAA Mid-Atlantic said. Unleaded regular gasoline averaged $1.71 nationally -- just 2 cents under the record set in 1974. Statewide, unleaded regular sold for an average of $1.68 a gallon, AAA reported this week. A survey of area stations conducted by The Capital Thursday found that self-serve regular averaged $1.70 a gallon, as opposed to $1.66 in mid-February and $1.55 in mid-January. Gas costs about 52 cents a gallon more than a year ago. For the average driver who racks up 15,000 miles a year, the cost of refueling has jumped more than $1 a day in that time period, said AAA spokesman Deborah DeYoung. She said it appears that price increases are the natural outcome of a likely war with oil-rich Iraq and an ongoing oil-field strike in Venezuela. "We have not seen any evidence of price gouging but the situation really does not look good, especially for the economy. It was breathtakingly bad news," she said. Ms. DeYoung said industry analysts have warned that it could take the rest of the year for gas prices to return to what people consider "normal." Walter Thompson, president of the Maryland Motor Truck Association, said his members are paying $1.75 a gallon -- 35 cents a gallon more than in December. "It's causing many small companies to curtail -- or go out of business," he said. "The industry is hurting; many companies are trying to put fuel surcharges on deliveries." Rising trucking costs are likely to cause an increase in consumer prices, Mr. Thompson said. Jay Lowry, founder of Lowrys' Forest Drive Services in Annapolis, said motorists are coping by driving less and by buying only a few dollars' worth of gas at a time instead of topping off the tank. "Demand is down about 14 percent" compared to last winter. That's a significant percent," Mr. Lowry said. Dave Darden, owner of Gibson's Citgo in West Annapolis, said he sees customers buying lower grades when possible, a move that AAA encourages. "They look up there and see the price of (mid-grade) gas, and they put in the regular," Mr. Darden said. "And we don't make as much off regular as we do high-test." AAA offered additional pointers for coping with the gas crisis: Slow down -- Each 5 miles per hour over 60 is like paying an extra dime per gallon of gas. Consolidate errands -- More than 60 percent of gas is burned on trips other than than commuting to work. Maintain the auto -- Properly inflated tires and a tuned-up engine save 2 cents a gallon. Clean up -- take junk out of the trunk -- each extra 100 pounds costs 1 mile to the gallon.