CA: Gas use on rise, despite high prices

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Posted at 12:41 a.m. PDT Friday, September 29, 2000

Gas use on rise, despite high prices Economy, long commutes drive up consumption BY GARY RICHARDS Mercury News

California motorists are on pace to burn up nearly 1 billion gallons of gas more this year than they did in 1999, even though prices are at record levels.

Gas consumption rose 3 percent during the first six months of this year, according to the California Energy Commission's weekly price report. That's almost twice the annual increase since 1995, and would result in the use of 15 billion gallons of gas this year compared with 14.2 billion gallons last year.

Energy officials and motorists say more people, the robust economy, longer commutes and more gas-guzzling sport-utility vehicles have all pushed up gas consumption.

``People are making more money, and they don't care about the price of gas,'' said Frances Suen, a mother of three in Fremont who now pays more than $30 to fill up her Dodge Caravan. ``But I care.''

Motorists from San Diego to Eureka have howled over prices that, this month, averaged $1.83 a gallon statewide for self-serve unleaded fuel. In the Bay Area, the September average is $1.98 a gallon, the highest nationwide.

But higher prices haven't translated into less driving. That's an ominous trend for a state that uses more gas than any other state or nation except the United States as a whole, and whose refineries are operating nearly at capacity yet can barely keep up with demand.

Gas consumption had been increasing by 100 million to 300 million gallons a year since 1995, making this year's projected increase of nearly 1 billion gallons an attention-getter.

That figure could go even higher, because gas use for the peak driving months of July and August hasn't been compiled yet.

Prices began their persistent surge toward $2 a gallon this spring when crude oil began its march to $35 a barrel and OPEC countries slowed production. But complaints over the sudden rise have been less than expected, say transportation and energy officials.

``Frankly, we haven't received as many complaints this year as we did last year over gas prices,'' said Rob Schlichting, a spokesman for the energy commission. ``Maybe it's that prices are high across the country. What made people so angry was when California was getting hit and other states weren't. Everyone seems to understand that this is a nationwide and, indeed, a worldwide problem.''

Gas complaints to RIDES for Bay Area Commuters Inc. also soared last year, but they have dwindled this fall.

``Maybe it's the good economy and people are desensitized to it,'' said Julia Maglione, communications manager at RIDES. ``They may complain, but they are still going out and buying SUVs.''

Indeed, through July, sales of pickups, SUVs and minivans surpassed 5 million nationwide, up from 4.8 million a year ago.

But for motorists feeling a pinch in the pocketbook, there are some encouraging signs. A few stations in Silicon Valley began trimming prices by 2 to 3 cents this week.

While $2 a gallon is stiff for many commuters, forking over $500,000 for a modest home in Silicon Valley is a bigger bill to pay.

``Jobs, housing and transportation have to be in balance, and right now they are not,'' said Vicki Moore, policy director for the Greenbelt Alliance. ``That means people driving longer distances to work, despite the price of gas.''

When Schlichting read a recent story in the Sacramento Bee about a new housing project in Elk Grove, outside Sacramento, he said he was stunned when he noticed where potential buyers worked. Not in the state capital, but in Silicon Valley.

``That's a two-hour commute one way,'' he said, whistling.

And that's a lot of gas burning up each day.

http://www.mercurycenter.com/premium/local/docs/gashog0929.htm

-- Martin Thompson (mthom1927@aol.com), September 29, 2000


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