GILROY
–– Gas prices in this city had been creeping upward in recent
weeks, but they shot skyward just before the weekend, bringing the
average price of a gallon of regular unleaded to $2.03 by
Monday.
GILROY –– Gas prices in this city had been creeping upward in recent weeks, but they shot skyward just before the weekend, bringing the average price of a gallon of regular unleaded to $2.03 by Monday.
On Thursday of last week, it was possible to get regular unleaded for $1.79 a gallon. The next day, those same stations were selling it for $1.99. As of Monday, only two gas stations in town were selling for less than $1.99: Costco Wholesale on Camino Arroyo, at $1.94, and Hecker Pass Gas on First Street, at $1.97.
“It’s expensive, and then I hear it’s going to be possibly up to $3 before summer!” Pam Jiminez of Gilroy said, giving voice to a popular rumor as she filled the tank of her sport-utility vehicle at Condil Company on Chestnut Street. Jiminez said she and her family will probably have to not visit relatives in Southern California as often.
“I’ve got two boys in college, and we pay for their gas as well, so yeah, we’re going to have to do some definite changing,” Jiminez said. “What that’ll be yet, we’re not quite sure.”
Even in Hollister, miles from 101, gas prices have soared in recent weeks to come neck-and-neck with Gilroy. In recent months, Hollister stations have often sold gas for 10 cents cheaper per gallon.
A survey of stations Monday, however, showed the average price of unleaded gas to be $2.02, while the average for premium was $2.15.
The highest price for unleaded in Hollister on Monday was $2.10 at the city’s Chevron station, while the lowest was at Jessie’s for $1.95.
One group from Arkansas traveling through town on a road trip was amazed at the prices – not only in the South Valley region, but in the entire state.
“California’s crazy on these gas prices,” said Letha Caetano from Arkansas, standing next to her truck at the Quik Stop service station on San Felipe Road.
Her friend, Ralui Hooten, agreed. “We come from Arkansas starting off at about $1.39 (a gallon),” Hooten said.
“The further we come this way, it skyrockets.”
Why the price hike? Jenny Mack, spokesperson for the American Automobile Association of Northern California, said the reason is twofold. Crude oil prices continue to remain high, she said, and on top of that, “Production at California refineries is down significantly as many of the refineries are going through routine maintenance.”
Many suspect that oil companies are gouging consumers. Tom Dresslar, a spokesperson for state Attorney General Bill Lockyer, said Monday, “We haven’t to date found any hard, direct evidence of any illegal activity on the part of the refineries or the distributors – but we’ll continue to look.”
No peak yet in sight
Prices are only expected to rise more, Mack said, although she declined to speculate what the peak might be – $3 per gallon or otherwise.
“Certainly it’s safe to say there are a lot of factors out there that indicate it’s going to be a very rough spring,” she said. “We’re definitely in line with the path that was taken last year, when we hit record highs.”
In 2003, the state hit two gas peaks: One in March, with a war with Iraq looming, and one around Labor Day. The average price per gallon of regular unleaded in San Jose hit its all-time high March 18, 2003 at $2.17. The AAA couldn’t provide all-time highs for Gilroy, Hollister or Morgan Hill.
This year might be on track to break 2003’s records. The state average Monday was $1.97 a gallon, according to the AAA. Exactly a year ago, it was $1.93. Of the 25 cities the AAA tracks daily for gas, the cheapest is Chico, which averaged $1.86 a gallon Monday. San Jose’s average was $1.93 Monday, a 7-cent increase since Tuesday, Feb. 17. Salinas’ was $1.92, Santa Cruz/Watsonville’s $1.98 and San Francisco’s $2.06.
Reactions
At the Rotten Robbie gas station on Leavesley Road at Murray Avenue, drivers passing through on U.S. Highway 101 sounded off about the gas price jump.
“I think it’s pretty brutal,” said Chris Hoebich of Morgan Hill, filling up a pickup truck. “It’s very hard for people who are making ends meet to all of a sudden get clobbered with that kind of increase.”
“I think they’re gouging us,” said Dave Funderburg of Hollister, filling his large pickup. “It’s gone up, what, 40 cents in about a month. … This is crazy.”
“It’s outrageous,” said Rachel Garcia of San Jose, filling up a V6 Toyota Camry. “Even for, like, an economical car that has a small tank and stuff, it’s like $20, $25 just to fill it up – for like 10 gallons.”
Rotten Robbie Assistant Manager Ruben Contreres posts the daily prices but says it’s the competition and suppliers that set them.
“We’re a competitive gasoline station,” Contreres said. “We do our best to make sure our prices stay the lowest in the area, but if (other stations) go up, we’ve got to go up, too, you know? … When it goes up, it’s ’cause it goes up for us, too.
“The prices go up because of what’s going on right now … the war and all that stuff,” Contreres added.
The most expensive gallon of gas in town Monday was at the Chevron on Leavesley Road, where premium was going for $2.34 and regular unleaded for $2.13. The station is also the closest one to the southbound 101 exit ramp.
“Every time the gas price go up, we have customers complain about it,” Chevron clerk John Hernandez said.
Robert Garcia of Morgan Hill wasn’t complaining, though, as he filled his Dodge Stealth sports car, powered by a roaring V10 engine.
“It doesn’t bother me,” Garcia said of recent gas prices. “I did well way back when. … If you’re not hurting financially, it’s irrelevant. I’m sure if money was an issue, then OK – it may impact me, but at this present time and for quite some time, I don’t have a budget.”
Garcia is in a minority, however. For most, gas prices are relevant.
“My daughter-in-law just bought a hybrid car,” said Laurel Maloney of Gilroy, at Hecker Pass Gas on First Street. “(It gets) 59 miles to the gallon.”
Maloney had just filled up a full-sized Buick, which she plans to replace soon. She is open to the idea of buying an electric-gas hybrid, she said.
“I might think of it,” she said. “It isn’t really comfortable for long-distance driving, … but you could have one for running around town and one for driving out of town.”
At Condil Company, a gasoline tanker driver from San Juan Bautista named George – who declined to give his last name for fear of angering his boss – was filling his SUV. The price hike doesn’t hurt him so much as a consumer as it does professionally, he said.
“Our sales go down, and we don’t get as many hours,” he said. “I don’t work for any of the oil companies; I work for an independent tanker company. There’s a bunch of tankers out back here. If you notice, there’s a whole bunch of them parked. The drivers are at home, you know, drinking coffee and watching ‘Oprah’ or something.”
Free Lance Staff Writer Kollin Kosmicki contributed to the story.
