Hollister and California residents alike were given an early
Valentine’s Day present
– the highest gasoline prices in 15 months and the costliest
prices the AAA has ever recorded during February.
Hollister and California residents alike were given an early Valentine’s Day present – the highest gasoline prices in 15 months and the costliest prices the AAA has ever recorded during February.
The average price for a gallon of unleaded gasoline in Northern California increased 14 cents during the past month to an average of $1.80, according to a survey conducted by the AAA of Northern California. A survey of Hollister gasoline stations revealed the average price for a gallon of unleaded gas was $1.81 as of this morning. The national average is $1.61.
“This is a big jump especially when it comes that fast,” said Sean Comey, spokesperson for the AAA of Northern California. “Increases are better when they’re in increments. When it happens this drastically and this suddenly, people tend to think they’re being jacked up on purpose.”
That was exactly what Hollister resident Carla Talavera thought.
“In the beginning, when prices are increasing, I think it’s because companies are trying to make a quick buck,” she said. “If it was because of low production or workers’ strikes, it would affect us down the line, not right away.”
Comey said that was not the case. Crude oil prices have soared during the past several weeks because the industry was dealing with a decline in Venezuelan oil exports because of a two-month strike. The strike was resolved, Comey said, but there was still some lag effect. Crude oil is usually around $28 a barrel, but was more than $30 now.
Also, some producers were fearing the effects of a war with Iraq. The war could possibly interfere with the distribution network in the Middle East, Comey said, which would effect the overall supply of crude oil.
“I think a lot of it is because of the impending war with Iraq. People are wondering if we’ll have sufficient gas, if we’ll have to ration like in the 70s,” Talavera said.
California produces 71 percent of its own gasoline and the state’s production was down as refineries undergo routine maintenance in preparation for a March switchover to a summer fuel blend, Comey said.
“The refineries have to retool, so there will be some downtime,” he said. “We have a summer fuel blend because of the weather conditions during the summer and the possibility of increased summer pollution.”
Californians should also remember that the state has the cleanest burning gasoline requirements in the state, and the gas cannot be imported, Comey said.
Local competition was also a big driving force behind the setting of prices, Comey said.
The AAA of Northern California survey was conducted Tuesday, but prices continued to increase after that. On Friday, California’s average price of unleaded gasoline was up 2 cents.
What’s more, prices are 50 to 60 cents higher than this time last year. Salinas’ average price was $1.88, up from $1.35 a year ago. San Jose’s was $1.20 a year ago – $1.89 Friday.
San Francisco had the most expensive gasoline price in the state at $1.95 per gallon and Chico had the cheapest at $1.57, according to the survey. The AAA conducts the survey every month.
The highest recorded price in California was $2.02 in May 2001, according to Comey.
There are things motorists can do to alleviate the harsh effects on their wallets, Comey said.
“The AAA reminds people that they can be a part of the equation by shopping for the best bargain,” he said. “If people search out the best deal, it’s more pressure to bring the prices down.”
Talavera said her fiance, who commutes to Sunnyvale, does just that. She said he will fill up at stations in Hollister and Gilroy since they are cheaper than those in the San Jose area.
Sardar Alli, a cashier with Unocal 76 across from Tiffany Ford, said many people have started bargain shopping, saying many customers are sampling other Hollister stations.
Also, Comey said drivers can maximize their gas mileage by having the tires properly inflated and taking unnecessary junk out of their trunks.
“It really adds up,” he said.
