www.lawnandlandscape.com 2/18/2003

CAMARILLO, California — Americans are digging deeper at the gas pumps.

According to a recent survey by publisher Trilby Lundberg, the average price of a gallon of gasoline nationwide has gone up more than 11 cents during the past two weeks.

Americans paid an average of $1.60 per gallon of self-serve regular, the Lundberg Survey said. According to the Lundberg survey, this is the highest price at the pump since June 2001.

The price increase is in keeping with the rise in crude oil prices, which have exceeded $35 per barrel — up more than $8 per barrel during the past two months, Lundberg said.

The two big reasons for the increase are an oil shortage caused by Venezuela's general strike and international preparations for a possible war in Iraq.

According to the Department of Energy, Venezeula was the fourth-largest exporter of crude oil to the United States in November, before the strike began.

Iraq, with the world's second-largest proven oil reserves, is the ninth-largest exporter to the United States. Concerns about the possible loss of Iraq's supply have affected the price of gasoline because on futures markets, "oil prices rise on fears and perceptions, not just supply and demand," Lundberg said.

Unusually cold weather across large portions of the United States have led to a spike in demand for heating oil, which, like gas, is refined from crude oil, she said.

Gas was cheapest in Phoenix, Ariz., where drivers typically paid $1.44 per gallon. Drivers in California's San Francisco Bay Area paid the most, at $1.82 per gallon. Des Moines, Iowa, had one of the largest increases: up 21 cents to $1.59.

The Lundberg Survey is based on prices that more than 7,000 gas stations nationwide reported Feb. 7.

Tuesday, February 18, 2003

www.tahoedailytribune.com February 18, 2003 Dan Thrift/Tahoe Daily Tribune Zoom By Gregory Crofton, Tahoe Daily Tribune

War jitters and a decrease in supply because of an oil worker strike in Venezuela have combined to double the price of a barrel of crude oil over this time last year. Gasoline on the California side of the Lake Tahoe Basin, some of the highest priced fuel in the country, is generally more expensive than fuel sold at the Nevada side of the basin because it must be reformulated to meet stricter air quality standards. Gasoline sold at the basin cannot contain MTBE, methyl tertiary butyl ether, a fuel additive banned in 2000. But that doesn't have a noticeable impact on prices at the pump, said experts from both states. "I don't think that makes that much difference now," said James Hickey, owner of Union 76 in South Lake Tahoe and four gas stations in San Diego. "All the other companies are getting rid of MTBE -- gas prices now have really nothing to do with MTBE." What does affect pump prices is how much suppliers jack up the prices to their buyers, who are gas station owners. They must maintain a certain profit margin to stay in business, said Al Moss, owner of Chevron at Ski Run Boulevard. "We just received another 5 cent increase this morning," said Moss on Monday morning when a gallon of regular unleaded at his station cost $2.23. "This is the highest I've ever seen them and I've been in the business 41 years." Moss said he is selling 27 to 30 percent less gasoline than he normally does this time of year. He believes the business is going to Carson Valley where large corporations such as Costco can afford to sell gas and not make a profit. "My wholesale prices are set by Chevron, what they sell it to me for I have to base my retail price on that," Moss said. "So as it goes up and they're passing the price onto me and I'm passing onto the motoring public ... And it's going to get higher." Competition from independent stations is what can often lower gas prices in an area, said Jason Toews, co-founder of www.gasbuddy.com, a Web site that tracks gas prices throughout the country. But Toews agrees with Moss' prediction that prices will continue to go up because of the shaky labor market in Venezuela and the threat of war in the Middle East. "Anytime there's uncertainty in the Middle East, it always affects the price of crude oil," Toews said. "I know Iraq produces 2 million barrels a day and the entire world produces about 70 million. "You stop all supplies coming from Iraq or affect the countries around it like Saudi Arabia and Kuwait and you could see record prices this summer." Prices also have increased at independent gas stations at South Shore. Lake Tahoe Oil Company at Round Hill, usually the cheapest in the area, sold its regular gas for $1.94 per gallon on Monday. "I noticed these guys were going up and thought, 'Uh-oh, this is serious,'" said Paul Bronken, who works as a dealer at Stateline and lives on Kingsbury Grade. "This is the only one that tries to keep it as low as possible." Hickey said he is working to keep prices at the Union 76 less than $2 but he doesn't think he'll be able to succeed much longer. "I don't know if it's possible, I only make about 8 or 9 cents a gallon, there's not very much margin there to make a profit and pay the bills," Hickey said. "The worst thing that's killing me are credit card fees. It's 3 percent card fee so if they buy 10 dollars of gas that's 30 cents goes to the credit card company." -- Gregory Crofton can be reached at (530) 542-8045 or by e-mail at gcrofton@tahoedailytribune.com

www.pantagraph.com Pantagraph Editorial Tuesday, February 18, 2003

What have we learned since the price gouging in which some service stations engaged following the terrorist attacks of Sept. 11, 2001?

Gas prices have been rising rapidly in the past month, supposedly because of labor unrest in Venezuela and fear of another Persian Gulf War.

But the Venezuelan oil workers are back on the job.

And if "fear" of war is enough to increase prices, what is going to happen if the real thing hits?

Will we again see stations hiking their prices to nearly $4 a gallon, as happened after the 9-11 attacks?

Or did actions taken by then Attorney General Jim Ryan against the most flagrant price-gougers send a message?

In fall 2001, Ryan filed or threatened to file lawsuits against a number of companies that raised prices in the aftermath of the 9-11 attacks.

Casey's General Store Inc. settled the case against it by -- among other things -- giving $25,000 to the American Red Cross, but admitting no wrongdoing. Other individual stations gave $1,000 to disaster relief efforts to avoid a suit.

A timely reminder is needed from the state's new attorney general, Lisa Madigan, on how she will react to gasoline retailers who engage in profiteering.

The Legislature should clarify the state's consumer fraud law to specifically outlaw gasoline price gouging. High fuel prices don't just affect casual motorists. They also have an tremendous economic impact by increasing transportation costs for goods.

A spokesman for AAA, the nation's largest auto club, called recent price hikes "uncomfortably close" to gouging. We agree.

Average prices at the pump in Illinois have risen 16 cents since January. Bloomington-Normal motorists have seen prices jump that much -- and more -- overnight from time to time, with a slow drop down.

But this time, it doesn't look like prices are going to drop much for the foreseeable future.

The oil industry should exercise restraint in raising prices.

But, if gouging occurs, state and federal officials should not exercise restraint. They should aggressively go after the profiteers.

www.gopbi.com Tuesday, February 18 Palm Beach Post Editorial Tuesday, February 18, 2003

Gas prices in South Florida are up about 45 percent from a year ago, but this is only the beginning. Industry analysts warn that with war in Iraq looming and the seasonal summer increases ahead, paying $3 for a gallon of regular is a possibility.

The American Automobile Association says it has found no evidence of price gouging, but Sen. Charles Schumer, D-N.Y., isn't buying that. He has asked the Federal Trade Commission for an investigation to explain why the national per-gallon average has risen 30 cents to $1.66 in just two months, and 13 cents in the past two weeks.

Typically, industry officials use the ever-popular broken-pipelines or burning-refineries excuse when such a spike occurs. This time, however, the explanations are more political and climatological: a strike in Venezuela, a cold winter that increased home heating oil demands, and the Bush administration's preparations for the campaign in Iraq. Analysts say crude oil supplies are at a 28-year low, so the higher prices make sense, despite Sen. Schumer's proper skepticism.

The nation has about 600 million barrels in its Strategic Petroleum Reserve stored underground in Texas and Louisiana. President Bush correctly has resisted the temptation to dip into the reserve to lower prices at the pumps. The reserve was created for emergencies such as shortages. Since Saddam Hussein, if attacked, may torch Iraq's oil fields, the nation may have to use its reserves soon enough.

It is hardly surprising that the Bush administration, with many personal and political ties to the oil industry, has done little to wean the nation from its overreliance on petroleum. But it is particularly disappointing that Congress has failed to do much more. Passenger vehicles have hit a 23-year low in fuel economy because lawmakers have refused to get tough with Detroit and toughen CAFE (Corporate Average Fuel Economy) loopholes. The government's light-truck exemption on fuel efficiency allows trendy SUVs driven by commuting office workers to fall into the same generous category that was intended for farm and construction vehicles. Americans remain unapologetic gas-guzzlers whose pain at the pumps is largely self-inflicted.

Gas prices in Palm Beach County averaged $1.74 for unleaded regular Monday, a nickel above the state average. Florida tourism takes a hit when families cancel road trips. Some stations in New York, New Jersey and California already have broken the $2 mark. Never at a shortage of explanations for higher prices, the industry appears to have a larger reserve than ever this year.

www.trib.com

VAIL, Colo. (AP) - Drivers who need to feed their turbo need to be prepared to shell out as much as $2.14 a gallon in Eagle County.

''We're in a brave new world when it comes to travel,'' said Colorado AAA spokeswoman Mary Greer. ''More Americans than ever are travelling by car'' after the Sept. 11 attacks.

Nationally the price of a gallon of regular has risen about risen about 13 cents in two weeks to an average of $1.633.

The oil industry has blamed tensions in the Middle East and a strike in Venezuela that has crippled that nation's petroleum industry. Venezuela is one of the largest exporters of crude oil to the United States.

Gas prices in Colorado's High Country are usually higher than in urban areas.