After months of decline, gas prices in Hollister and across the
state are moving up again and experts say that further increases
are likely as summer draws nearer.
Hollister – After months of decline, gas prices in Hollister and across the state are moving up again and experts say that further increases are likely as summer draws nearer.
An informal Free Lance survey conducted Tuesday found that the average price for a gallon of regular gasoline in Hollister is about $2.73 – up about 25 cents from mid-March. Gas prices across California have increased by about the same amount since last month, putting the statewide average at $2.80 per gallon of regular gasoline, according to AAA.
Though gas in Hollister is still about 7 cents below the state average, the increase in the price of petrol is a matter of concern for people who are now pumping even more of their paychecks into their gas tanks
“I was surprised. I had not noticed that the hike was happening,” said Hollister resident Lynda Pettibone-Smith. ” I was in San Jose over the weekend and noticed gas was $2.73 a gallon, and I thought, ‘oh things will be cheaper in Hollister.’ But when I got back here I saw it was $2.73 too. It was kind of a shock.”
Though Pettibone-Smith is one of the fortunate people who work locally, she did say that when going out of town she will now take her family’s Honda Accord rather than the small pick-up truck that guzzles more fuel.
Like residents, local government is feeling the hit of increasing gas prices that are making it more expensive for the city to do business.
“We’ve noticed over the last year or so big increases from our suppliers,” said Hollister Community Services Director Clay Lee. “It has hurt us in the pocketbook.”
But with a plethora of public works duties to get done, Clay said that his department has little choice but to keep driving to jobs around the city – no matter the price of gas.
“We can’t really do less driving,’ he said. “We can’t walk to jobs, we carry a lot of heavy equipment.”
Clay did say that he and his crews try to take a kill-two-birds-with-one-stone approach and lump jobs in the same area together so there is less driving that needs to be done.
While high gas prices take their toll on the city budget, City Manager Clint Quilter did identify a silver lining surrounding the gray cloud of skyward gas prices.
“As prices go up,” he said, “and as sales tax (from gas sales) go up, there is some positive offset to that.”
There’s a simple explanation for the increase in fuel prices: the price of crude oil has gone up. More difficult to explain is the reason why crude oil prices are rising, according to Sean Comey, spokesman for AAA of Northern California.
In addition to fear of instability in oil producing states and recent forecasts for more hurricanes in 2006, the ubiquitous forces of supply and demand are contributing to rising fuel costs, he said. Also, emerging economies like China have played an important role in the increase in demand for oil, he said.
“I also don’t think we should overlook profits (for oil companies),” Comey said. “People selling gasoline are generally making a pretty hefty profit. They will point to all those market forces, but they never tell how much money their making.”
As summer draws nearer rising local demand for gasoline – coupled with increased global demand – will likely push gas prices higher, according to Comey.
“They’re already higher,” he said. “They’re starting off at a higher level
Motorists who think that gas prices going up lines the pockets of the local gas retailer are mistaken, according to Comey. When the price of crude oil rises the cost of a gallon of gas increases by almost the same percent.
“The average gas retailer probably makes as much selling you a cup of coffee and a donut as he does selling you a gallon of gas,” he said.
Comey recognized the problem many Californians, who live far from work, have in attempting to drive less.
“The trouble is, most people don’t have a lot of discretion over how much fuel they use,” he said. “Most people need their cars to commute to work, go shopping, take their kids to school. For the most part people don’t have an option.”
Luke Roney covers local government and the environment for the Free Lance. Reach him at 831-637-5566 ext. 335 or at lr****@fr***********.com
