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Gas prices are rising again in the county
Changes defy normal variations for the seasons
Consumers normally expect gas prices to spike in the summer and drop in the fall.
But for the past five years, that hasn't been the case.
In Ventura County, the average price of regular unleaded gasoline was $3.11 a gallon Monday, up 9 cents from the previous week, according to The Star's weekly survey of 10 area stations. The average remained less than $3 from Aug. 13 to Sept. 17, but has since fluctuated.
"There's no more normal," said Jeff Spring, spokesman with the Automobile Club of Southern California. "We're getting the two-humped camel, with prices rising in the spring, drop in the summer and rise again in the fall. Then they drop again in the late fall."
In recent years, oil prices have soared during the fall in the aftermath of hurricanes and broken pipelines. Spring attributes the recent price increase to speculation among traders, fueled by the weakening U.S. dollar.
"A lot more oil is being traded on paper than is being produced," Spring said.
Many investors are using oil as part of their investment portfolio, buying and selling for a quick profit, Spring said.
Light, sweet crude oil for November delivery reached a record $90.07 a barrel Friday morning. But the price dropped to $87.56 Monday, down $1.04 from Friday's close on the New York Mercantile Exchange.
Some analysts think that prices have peaked.
Tom Kloza, chief oil analyst for Oil Price Information Service, said it is unlikely to see any substantial increase in gas prices through the end of the year.
"Maybe $90 (a barrel) will be the top," he said. "If it's not, it's certainly the last inning."
However, Kloza predicts that consumers will wrestle with another first- or second-quarter spike next year, particularly on the West Coast.
Douglas MacIntyre agrees that prices should fall. MacIntyre, director of the Energy Market and Contingency Information Division for the Energy Information Administration, says the rise in crude oil prices has more to do with supply and demand than the weakening dollar. While surplus inventories in some developing countries are whittling away, demand is rising faster than ever, he said.
"We're not forecasting $100; we think it'll come down a little bit," MacIntyre said.
That's good news for Ventura County — where paying more than $3 gallon has become the norm this year.
According to the Automobile Club of Southern California, the county's average for regular unleaded gasoline was $3.12 a gallon Monday, up 1 cent from Sunday and 13 cents from a month ago.
The county's average was less than the state average of $3.15 a gallon, up 17 cents from the previous month.
California has the second-highest gasoline prices in the nation, trailing Hawaii, which averaged $3.18 Monday, according to the Automobile Club of Southern California. Alaska followed at $3.04. The states were the only ones that topped the $3 average Monday.
The national average remained flat at $2.82 Monday, compared with $2.80 Sept. 22.
It's no surprise that Californians are paying more at the pump. The type of gas produced here is more expensive and costs more to produce, Spring said. In addition, Californians face high sales taxes at the pump. On top of that, supply is tight and demand is strong, although demand has decreased in recent weeks because of the high prices, he said.
Customers seem to be accepting the price increase without question, said Ahmad Lodin, who manages an Alliance gas station in Thousand Oaks. He said the station is slower when prices drop and gets busier when prices go up, as though customers want to rush to get gas before prices increase again.
Rising gas prices are eating into profits for many business owners, including Kirk Prouse, owner of All Seasons Chem-Dry in Oxnard. Since gas prices began increasing earlier this month, he pays about $1,500 to $2,000 more a month for his fleet of six or seven trucks that operate from Santa Maria to Simi Valley.
He hasn't been able to pass the increased cost on to customers because there is a shrinking market for carpet, as more people demand hard surfaces, he said.
Some drivers are so accustomed to price volatility at the pump, they don't bat an eye at paying 10 cents more a gallon.
As Jose Santana filled up his Cadillac Escalade at a Mobil station in Oxnard on Monday, he accepted the higher price with a shrug. The Modesto resident says he spends about $700 a month on gas because he drives twice a month to Oxnard to see his fiancee. That trek will come to an end, though. On Monday, he was returning to Modesto with his fiancee.
"The bad thing is gas goes up and wages don't," Santana said. "Gas prices are outrageous, but I'm getting used to it. What can we do about it?"






Posted by THX1138 on October 24, 2007 at 12:06 p.m. (Suggest removal)
Amazingly I've seen some commuters with brand-new gas-guzzlers[?!].
So much for reducing our dependence on foreign oil...!
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