Gas Prices in California Rise for Labor Day Weekend as Supply Dwindles Source: Knight Ridder/Tribune Business News Publication date: 2000-09-02

Sep. 2--With refinery shutdowns once again getting the blame, gasoline and diesel prices have soared, sending diesel over $2 per gallon at some stations this Labor Day weekend. Prices for unleaded regular, below $1.60 a week ago at some area stations, have risen significantly since then -- to $1.80 at the HCD Arco on Golden State Boulevard in Turlock and $1.89 at the USA on Oakdale Road in Modesto.

And diesel prices have climbed 50 cents over the past month, causing truckers to tack surcharges on to their freight fees.

"The latest hikes are attributed to heavy summer demand and refinery problems," said Dick Vine of E.R. Vine Distributing in Ceres. "But there's no quick answer."

The supply problems, he said, are caused in part because the refineries struggle to meet the demand when they are operating at capacity, let alone when some of them are down.

Daniel Lancaster, dispatcher at CL Bryant Distributing in Modesto, said two Tosco refineries were down at the same time Arco, Shell and Texaco plants had problems.

As a consequence, the diesel supply tanks that local distributors d raw from in Sacramento, Stockton, Chico and Fresno went empty for three straight days last month. And a distribution point in Richmond -- home to many refineries -- was empty for a day.

"Even though one of Tosco's is back on line, it still takes about two weeks (to begin producing)," Lancaster said.

The West Coast average for diesel climbed to $1.77 Friday, and California averages $1.85, said John Casey, head dispatcher for Clawson Trucking Co. in Ceres. The national average is $1.54, he said.

The increases, he said, will add $24.12 cents to the cost of a trip from Ceres to Phoenix.

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-- Martin Thompson (mthom1927@aol.com), September 05, 2000

Answers

Ah, yes, living in California is an experience. Remember the outrage when diesel prices hit $2 last winter in the Northeast? Well, they're now at that level here now, portending still-great upward movement for the coming winter. And, still no great outcry. Why? When will it come? Who knows?

If it comes before the election, I suppose those wicked oil men, Bush and Chaney will get the blame.

-- JackW (jpayne@webtv.com), September 06, 2000.

I'm wondering how in just 6 months or so, there is realization of increase in demand from the high tech energy drain and a robust economy using all the power in every corner of the USA. Six months ago we did not have these problems. Something is happening with energy supply that we are not being told about. The facts don't add up? Y2K?

-- Ruth Angell (bar@bpsinet.com), September 06, 2000.