CA Gas costs top all records

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Gas costs top all records By Teena Massingill TIMES STAFF WRITER

Old gasoline price records were shattered this week as the average cost of unleaded gasoline leapt to $1.84 per gallon in the Bay Area, beating the previous record by 14 cents.

It was the same story for every city surveyed by AAA of Northern California, as all logged historic highs Tuesday.

Not only did the survey, which was released Tuesday, reveal historic highs, but it also showed the meteoric rise in gas prices over the last month since AAA conducted a full survey of more than 23 cities Feb. 15. The agency did an abridged survey of 11 cities Feb. 29. Increases since Feb. 15 include:

Antioch: $1.79, up 36 cents

Berkeley: $1.85, up 32 cents

Fremont: $1.84, up 37 cents

Pleasanton: $1.94, up 34 cents

Richmond: $1.83, up 36 cents

Walnut Creek: $1.80, up 34 cents

Though Pleasanton had the highest average gas price among Bay Area cities, Eureka topped the Northern California charts at $2 per gallon, possibly the highest average for any comparable-size city in the United States.

And they're likely to get higher. Though market forces could lower prices in the next few weeks, AAA public affairs representative Paul Moreno cautioned, "Don't hold your breath."

Just two weeks ago, Moreno said California's oil refineries could come to the rescue by stepping up production of gasoline. Refineries typically cut production in the late winter and early spring to do scheduled maintenance.

Moreno had hoped that once the refineries were finished with maintenance, the increased production would add to the supply of California reformulated gasoline and, therefore, bring prices down.

"I thought that would happen, but output is still low," he said. "There's a reluctance by refiners to buy crude oil because the crude prices are so high. Sometimes, all the refineries wait until the prices go down to buy. Everyone's waiting for a sale, but that sale hasn't come."

That means drivers will continue paying steep prices, possibly through the summer.

"Even if OPEC increases production and if oil prices come down, inventories of gas and oil are still very low," Moreno said. "We're approaching the summer driving season, so we'll have high prices throughout the spring and summer," Moreno said.

The only comfort for California motorists is that they aren't the only ones suffering sticker shock at the pump. High crude oil prices have affected the nation.

And the difference between prices here and elsewhere has actually narrowed. Drivers in Southern California, for instance, are paying $1.77, only 5 cents less than in Northern California. There is typically a 10- to 15-cent difference in price between the northern and southern sections of the Golden State.

When California sustained a series of refinery problems last spring, prices spiked at $1.68 in Northern California, although the national average was 53 cents less at $1.15 per gallon. Today, the national average of $1.54 is only 29 cents less than that of Northern California.

Teena Massingill covers small business and consumer issues. Reach her at 925-977-8466 or tmassingill@cctimes.com.

Article received on Wednesday, March 15 2000 at 08:07 EST

http://home.digitalcity.com/sanfrancisco/news/article.dci?provider=sanfranciscocontracostatimes&category=News&article=428644

-- Martin Thompson (mthom1927@aol.com), March 17, 2000


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