Gasoline prices nationwide have been steady for the past two
weeks, yet California has been hit with a large jump in prices for
reasons that many can only speculate about.
Gasoline prices nationwide have been steady for the past two weeks, yet California has been hit with a large jump in prices for reasons that many can only speculate about.
The statewide average for a gallon of regular unleaded gasoline is $1.63, up from a $1.58 a month ago, according to the American Automobile Association.
In San Benito County, the average price for a gallon of regular unleaded was $1.60 per gallon as of Monday.
“I feel terrible (about the increase in gas prices) because I didn’t go anywhere for the last few days,” said Esperanza Gutierrez, a Watsonville resident who commutes to Hollister and Aptos.
Gutierrez was filling her car at the Quick Stop on Fourth Street, where, in the past few weeks, prices have been one of the lowest in Hollister at $1.41 per gallon of regular, but jumped to $1.51 on Monday. Esperanza was unhappy about the increase since she spends more than $30 a week in gas.
The national average was $1.46 on Friday, up from $1.45 a month ago and up from $1.21 a year ago at this time. Last year California, averaged $1.47 per gallon at this time.
San Francisco had an average of $1.81 a gallon, up from $1.72 a month ago, while San Jose was $1.65 Friday, an increase from a $1.57 a month ago.
The jump in California gasoline prices was because of increased demand, said Atle Erlingson, spokesperson for AAA.
“Last year we had very low oil prices because of decreased demands after the terrorist attacks. Back in December through February we had the cheapest gas in three years,” Erlingson said. “Now, demand has been outpacing supply for some reason. People are probably driving more and many airline flights are getting reinstated.”
Although nationwide gasoline prices have remained relatively stable, California often has different prices than other states because it uses the cleanest burning fuel in the country, Erlingson said.
When supply decreases, California does not have the option to purchase fuel from other states and thus are “much more prone to price spikes,” Erlingson said.
A big wild card in the mix is a potential war with Iraq, he said. If the United States go to war, gasoline prices would probably increase immediately.
“The oil market is a lot like the stock market,” Erlingson said. “If there’s concern, pessimism, if there’s instability in the area, it may cause concern down the road and may put an artificial premium for the price of crude oil.”
Trilby Lundberg, an analyst that recently surveyed 8,000 stations nationwide, said she was optimistic about the future of gasoline prices in America.
“At this time, wholesale prices are falling in all parts of the country, suggesting that retail prices will soon grind to a halt, including California,” she said.
