Gas prices ready to grab your wallet again Source: The San Diego Union-Tribune Publication date: 2000-05-05

Gasoline prices, which reached record levels in San Diego several weeks ago before ebbing slightly, may be about to spurt upward again. Local independent dealers said yesterday that the spot-market price they pay for fuel in Los Angeles has soared by about 20 cents in the last week, apparently due to problems at several oil company refineries.

"The market has reversed itself drastically in the last 10 days," said Sam Boyd, owner of Golden State Petroleum in El Cajon.

Boyd -- who operates six stations in the county -- said he was paying about 90 cents a gallon (not including taxes and pipeline costs) to his supplier last week, but that the price has since climbed to $1.10.

Another San Diego dealer estimated that his cost for fuel jumped by 14 cents on Monday and Tuesday alone.

Arco, Exxon Mobil and Ultramar are among oil refiners that reportedly have encountered troubles at their West Coast refinery sites in recent days, ranging from malfunctioning fluid catalytic cracker units to fuel that wasn't properly blended.

The BP Amoco-owned Arco refinery in Carson, for instance, said its cracker unit has been down at various times during the past two weeks, substantially diminishing its typical daily output of 96,000 gallons.

"We've been running at pretty much reduced rates," said Walter Neal, a spokesman at the facility.

Neal said that refinery supplies about 25 percent of all gasoline consumed in Los Angeles, as well as a substantial amount in San Diego County, so a dip in supply "certainly would have an impact on the spot market price."

Other reported refinery troubles include a malfunctioning alkylation unit at the Exxon Mobil refinery in Torrance earlier this week, and repair work on a cracker unit at Ultramar's Carson facility last week.

However, reports that Chevron's El Segundo plant also was experiencing difficulties were dismissed yesterday by the company.

"We haven't had any problems here," said Chevron spokesman Rod Speckman, noting that the refinery is running at its usual output of between 230,000 gallons and 250,000 gallons a day.

Just when the widespread refinery turbulence might be evident at local service-station pumps was unclear yesterday.

The average cost of a gallon of unleaded regular gas in San Diego County last Friday was $1.721, off from $1.762 a week earlier and down from record levels of more than $1.80 in mid-March, according to the Utility Consumer's Action Network (UCAN).

Charles Langley, a UCAN spokesman, yesterday advised local motorists to "fasten your seat belts."

He speculated that recent spot-market price hikes may be an attempt by oil companies to "discipline" independent dealers, who derive most of their fuel supplies from refiners' stock.

Thus, when independent dealers are forced to raise prices, "it makes it easier for the oil companies to raise their prices," he said.

Anita Mangels, a spokeswoman for the Western States Petroleum Association (WSPA), called Langley's assertions "patently absurd . . . Refinery upsets and outages have economic ramifications."

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-- Martin Thompson (mthom1927@aol.com), May 08, 2000