HOLLISTER
Gas prices may be rising in the coming months due to the summer season that traditionally brings higher demand, according to AAA Northern California Spokesman Matt Skryja. But to what extent remains unknown as prices have remained up and down in recent weeks.
“I can’t speculate – it’s such a roller coaster,” Skryja said. “Prices are not tied just to oil prices. To look into a crystal ball, it’s tough.”
Lowest prices in Hollister today were at $2.19 at the two Quik Stops and were as high as $2.34.
If there is an increase in gas prices in the coming months, AAA says it may be due to the switch to warm weather gasoline along with the usual bump for that season. Summer gas contains certain additives that are needed in warmer weather to burn cleaner, Skryja noted, and winter gas lacks these additives. That increase might happen sometime between March and May, he said.
Graham Mackie, one of the owners of Dassel’s Petroleum, disagrees with AAA’s statement about rising prices.
“I don’t see gas prices increasing like people are suggesting,” Mackie said. “Summer gas should have plenty available at a good price unless production goes down.”
Prices for gas have dropped by about five cents per gallon in the past week, Skryja said. The price of regular unleaded – the measuring stick for gas price monitoring – was at $2.30 per gallon in the area on Feb. 17 and has dropped five cents to today’s average price of $2.25, according to AAA. But overall, prices have gone up since Jan. 25 when they were at $2.09 per gallon.
Lower prices usually correlate with decreased demand.
“One of the biggest influences has to do with demand,” Skryja said. “Folks are not using as much gas with the economy.”
The rise in prices over the last month has to do with production, Mackie said. The recent “bubble” in gas prices was caused by problems at two Los Angeles refineries.
“The only thing that could affect prices here is production,” he said.
Mackie couldn’t tell the Free Lance a price for a gallon of gas at Dassel’s because each station has a different price. “There could be 10 or 12 prices in one day.” He did say that prices may drop another 10 cents if the demand stays neutral.
“The buying public has the control. If they use constraint, the price is going to go down,” Mackie said.
Over 70 percent of the gas used in California is for commuter travel to and from work, Mackie said. With the current economic situation and increased layoffs, commuters may not have the reason to drive to work.
“It is the economy that is causing most people to conserve,” Mackie said.
