Illinois gas prices could soar to $3 per gallon this summer

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Illinois gas prices could soar to $3 per gallon this summer Updated 12:00 PM ET May 4, 2001

By Lisa Glass Daily Northwestern Northwestern U.

(U-WIRE) EVANSTON, Ill. -- The Chicago area does not boast the highest gasoline prices in the U.S. -- Death Valley, Calif., holds that honor for the month of April -- but many gas station owners say this spring's $2-per-gallon prices are only the beginning.

"The prices are going to be very, very high," said Tie Taylor, manager of Oakton and Dodge Shell, 500 Dodge Ave., in Evanston.

"The companies are saying they have no stock to give us," Taylor said. "There is no supply for the demand."

Northwestern University students staying in the Chicago area over the summer could be hit with an unexpected expense, as gas station owners predicted gasoline prices could surpass the $3 mark.

"For regular (gasoline) this summer you should expect $3 a gallon," Taylor said. "Gas station owners are going broke. It's just a bad situation. When the price is high for you, there is no profit for us."

Last summer, gasoline prices in Chicago were the some of the most expensive in the country, escalating as high as $2.25 a gallon for regular unleaded gas on June 20.

The cost of a gallon of regular gasoline averaged $1.66 in the Chicago area on Thursday, making Chicago the fourth most expensive large market in the country.

And prices in Evanston are higher than the Chicago area average. On Wednesday, a regular gallon of gas cost $2.13 at Warren's Shell on 1201 Chicago Ave. and $2.15 at Ridge Amoco on 1803 Ridge Ave.

Average prices in the Chicago area rose 29 cents from $1.47 in March to $1.76 in April. Prices are 20 cents higher last month than they were in April 2000.

Last week, Illinois officials advocated public transportation, even going so far as to suggest a general gasoline boycott.

"That is ridiculous," said Norma Cooper, Manager of Community Affairs for AAA Chicago Motor Club. "If they decided to have a boycott for a day or two, people would fill up the day before or the day after. Decisions you make with regard to your transportation are what make a difference."

Cooper recommended planning car trips to minimize driving time, carpooling, making sure cars are properly maintained to ensure high gas mileage and checking what kind of gasoline cars need.

"If we are going to still get to work or to school there are things that we can do to get the best bang for our buck," she said. "Figure out what kind of gas you really have to burn in your car. People think if they put in super, they'll get better gas mileage, but they probably won't."

Annie Brennglass, a Weinberg sophomore, said she recently paid almost $2 a gallon when she filled up her tank.

"It's annoying," she said. "If I know I need gas I won't get it right away. I'll wait until I see a somewhat reasonable price."

Brennglass, who is staying in Evanston over the summer, said she is shocked that prices may rise above $3.

"Oh my God, that's ridiculous," she said. "There are much more important things my money should go to."

And officials say the cause of the high price isn't simple.

"There are a number of factors that make up this situation," said Scott Dean, a BP spokesman. "Refineries have just completed the switch out from winter- to summer-grade fuel and there have also been some problems with refineries and pipelines. There have already been four refinery outages in the past month."

Cooper said reducing gasoline prices will require long-term solutions.

"People wouldn't scream as much if it were the orange crop, but this is a product that's used by every level of the economy," she said. "If we are going to do something, we are going to have to devise a long-term strategy. We're kind of in a pickle and we're going to have to do something about it."

(C) 2001 Daily Northwestern via U-WIRE

http://news.excite.com/news/uw/010504/business-33?printstory=1

-- Martin Thompson (mthom1927@aol.com), May 05, 2001

Answers

"Refineries have just completed the switch out from winter- to summer-grade fuel and there have also been some problems with refineries and pipelines. There have already been four refinery outages in the past month."

Questions: Why are so many refineries and pipelines breaking down? Has there been any time in the past where so many problems like this ever occurred? And they said Y2K was a non-event!

Brendon

-- Brendon (Georgiabotz@yahoo.com), May 06, 2001.


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