Hollister
– Local gas prices have increased by 17 percent in the past
month – including a jump of 31 cents in the past two weeks – and
those who track prices say they aren’t likely to drop anytime
soon.
Hollister – Local gas prices have increased by 17 percent in the past month – including a jump of 31 cents in the past two weeks – and those who track prices say they aren’t likely to drop anytime soon.
“It would appear unlikely that we’re going to see a significant amount of relief in the near future,” said Sean Comey, a spokesman for the American Automobile Association of Northern California.
Comey said it’s hard to predict if prices will continue rising in the coming months, but he noted that retailers are likely to continue raising prices to compensate for recent increases in wholesale rates.
“We may not have seen the current cycle of price increases run its course,” Comey said.
A survey of 11 Hollister gas stations on Tuesday showed the average price for a gallon of unleaded gas is $3.09, 55 cents higher than the national average. Four weeks ago, the local average was $2.64 per gallon.
According to the AAA’s March gas report, the average price for regular unleaded in Northern California is $3.14. San Francisco’s average price of $3.32 is the most expensive in the nation.
The AAA’s report attributed increasing prices to a number of factors, including refinery problems, rising oil prices – a barrel of oil, which cost less than $50 in early January, was priced at $58.16 on Wednesday – high consumer demand and financial speculation in the oil commodities market.
Comey noted that refineries are also switching from “winter gas” to “summer gas” to limit pollution, a move that temporarily decreases supply.
Hollister resident Joseph Gutierrez said he doesn’t really understand why prices are going up, but he’s not happy about it.
“It seems like the wind blows in Florida and it increases gas prices,” he said.
As a retiree on a limited income, Gutierrez said price increases hit him particularly hard. Nowadays, he needs to think carefully before making appointments to see doctors in San Jose and Monterey.
“A trip to Monterey costs me $40,” Gutierrez said.
In order to pay for gas, Gutierrez said, he occasionally has to borrow money from his brother. Gas costs also forced Gutierrez to reschedule an appointment at the Stanford Medical Center in order to wait for a check.
“I’m worried that it’s going to go even higher,” he said. “Then you’re going to have people who are stranded.”
Bill Mifsud Jr., owner of the local sports memorabilia and comic book store Bill’s Bullpen, said he’s also worried about increasing gas prices. Mifsud noted that the things in his store are something people buy only after paying for necessities like gas and groceries.
One bad sign, Mifsud said, is that customers are starting to complain about gas prices when they’re in his shop.
Mifsud said that when prices go up, his customers’ disposable income “is being pumped into their gas tanks.”
Anthony Ha covers local government for the Free Lance. Reach him at 831-637-5566 ext. 330 or ah*@fr***********.com.
