Gas prices continued to rise in San Benito County and around the state Monday, after a dramatic spike over the weekend that increased prices by up to 30 cents from Friday to Saturday.
An unofficial poll of gas stations around Hollister Monday afternoon, found the highest price at $4.83 a gallon for regular at the Chevron gas station on Tres Pinos Road, with the lowest at $4.49 a gallon at Quikstop on San Benito Street.
The most common price around town was $4.55 on Monday morning.
The sudden statewide surge in prices was blamed on maintenance at oil refineries in Southern California, along with a pipeline issue that slowed the movement of gasoline from the southern part of the state to other parts. The Richmond refinery, closed due to a fire in August, has not yet reopened.
Hollister prices came in below the state average, according to the American Automobile Association’s Fuel Gauge website. The average for the state on Monday morning was $4.668 for regular, up from $4.142 a week ago.
The prices eclipsed the highest record price set on June 18, 2008, when California’s gas cost climbed to $4.596 a gallon.
The cost of gas was expected to go down as early as Tuesday since Gov. Gerry Brown worked with environmental regulators to allow the use of a less-expensive winter blend of gasoline to be used three weeks earlier than in past years.
While diesel costs have not spiked in the same way as gasoline – and were actually a few cents lower than last week – Jeff Cordova, the vice president of Brent Redmond Trucking said the volatile market can cause issues for those in transportation.
“It is a big aspect of our operating cost,” Cordova said. “You are right – it hasn’t spiked as much.”
But he said according to the federal Department of Energy index, the cost of diesel in California tends to be about 30 cents more a gallon than the national average because the state’s diesel requires a special blend just as regular gasoline does.
The highest diesel price on record was $5.103 on June 2, 2008, according to the AAA fuel gauge website. The average price in California this week was $4.52.
“It means we have to compete against guys that are national carriers or based outside of California and buying fuel at a lower rate,” he said.
While the company passes a fuel surcharge onto the vendors it works with, which includes grocery store chains and food vendors in seven Western states, he said the fluctuation in the market creates a cash flow issue.
“We get paid on the average in 30 days,” he said. “When fuel spikes, we are buying expensive fuel today and not getting paid for that for a month. It becomes a strain on cash and not only for a company like Brent Redmond, but for every owner-operator out there on the road.”
Brent Redmond Transportation has a fleet of 125 trucks, including company-owned vehicles as well as owner-operator vehicles leased on a long-term. All the trucks are refrigerated and carry such goods as fresh produce or seafood.
“When fuel prices go up, at the end of the day when you buy products at the grocery store, that price is incorporated,” Cordova said.
Average gas prices around the state on Monday:
San Jose: $4.676
Salinas: $4.625
Los Angeles: $4.703
Oakland: $4.679
Riverside-San Bernardino: $4.688
Hollister: $4.55
