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Gas prices spike at fastest clip in 5 years
County's average hits $4.38 a gallon
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More from BusinessEven as gas prices have retreated in other parts of the country, California hasn't seen any breaks.
Ventura County motorists have helplessly watched gas prices jump several cents per day.
The average price of regular unleaded hit $4.38 a gallon today, which is up 20 cents since May 30 — the fastest one-week spike in five years — according to the Automobile Club of Southern California.
The last time gas prices surged so quickly was in August 2003, when there was a pipeline break in Arizona and California had to turn to alternative supplies. There was a 25-cent increase that week, said Marie Montgomery, spokeswoman for the Auto Club.
This week's soaring fuel prices are bucking an historical trend. In recent years, gas prices have jumped in May before Memorial Day, then backed down in June and July. Prices typically peak again in the fall.
"This has certainly been an unusual year," Montgomery said. "We have never seen our spring gas prices spike this much, going into June with full force like it's going now."
Montgomery and industry analysts say it's impossible to know what to expect, saying "we're in uncharted territory."
"Even though people know gas prices are going up, it sort of boggles your mind," Montgomery said.
It's especially baffling to Californians, who are paying more than almost everyone else in the country. The state's average price for regular unleaded gas is $4.40 today, the highest in the nation, according to the Auto Club. Alaska and Hawaii are next at $4.30 and $4.17, respectively. The national average is $3.99 today.
California prices have remained high because its refineries have shifted their capacity to produce more diesel and less gasoline, Montgomery said.
Increased production has nudged diesel prices down by about two pennies a day this week, to settle at $5.11 on Friday.
One of the main reasons that gas prices are increasing is the price of oil, which surged today by nearly $7 to new record high above $136 a barrel after a Morgan Stanley analyst predicted prices could hit $150 by the Fourth of July. A falling dollar and growing tensions in the Middle East are also pushing prices higher. Light, sweet crude for July delivery jumped today as much as $6.96 to $134.75 on the New York Mercantile Exchange, before easing slightly to trade at $134.40, up $6.61.
— The Associate Press contributed to this report.
On the Net:
http://www.fuelgaugereport.com/
Posted by mamaof2 on June 6, 2008 at 11:05 a.m. (Suggest removal)
Make it stop please!
Posted by CitizenCamarillo on June 6, 2008 at 11:19 a.m. (Suggest removal)
Diesel at over $5/gallon stays the same or goes down a couple of cents and gas at less than $5/gallon goes up 20 cents. Why?
The answer was clear in the article by the quote. "California prices have remained high because its refineries have shifted their capacity to produce more diesel and less gasoline, Montgomery said."
Simply supply and demand - Produce goods where the profit will be highest; and following the money, that's diesel at this time.
Posted by cameronincam on June 6, 2008 at 11:27 a.m. (Suggest removal)
Read this article... I think it lays out the current situation and where things are hopefully headed:
Fortune - Why oil prices will tank
http://tinyurl.com/5qasp6
Posted by VeritasLuxMea on June 6, 2008 at 11:56 a.m. (Suggest removal)
The U.S. has PLENTY of energy on it's own soil. We are a MUCH larger country than Saudi Arabia and have lots of oil underground -------- the enviro-unibomber types hate this option.
Western Europe has safely and successfully been using nuclear for most of its energy needs for decades - NO SMOG! The Earth is full of this energy right below our feet. If the word "nuclear" scares you then please stop watching hollywood's movies - it is safe and friendly to the environment (except for the very small area the waste will be stored, which is deep, deep underground - much better than fossil fuel emmissions we breath).
So, we have these options, but due to our politicians and fringe groups, we IMPORT our energy and pay through the nose for it.
And NO, ethanol will not save us. It takes more energy to make it than the energy it produces. Another gov't joke we are now forced to live with.
Posted by ccerda on June 6, 2008 at 11:56 a.m. (Suggest removal)
Road Trips: CANCELLED
VACATIONS: CANCELLED
MAKE IT STOP!
Posted by THX1138 on June 6, 2008 at 11:58 a.m. (Suggest removal)
I wish the government would consider some level of regulation of the oil industry. Sure supply and demand is a factor, but there's also speculation in the market that produces many synthetic price jumps.
To shift gasoline production to diesel production is a joke - with the billions oil co's make, how about building a refinery specifically for diesel?!?!
Posted by nachtschimmelreiter on June 6, 2008 at 12:25 p.m. (Suggest removal)
OPEC sells oil for $128.00 a barrel.
OPEC nations buy U.S. grain at $7.00 a bushel.
Solution: Sell grain for $128.00 a bushel.
Can't buy it? Tough! Eat your oil!
Then, oil will come down.
Posted by omie on June 6, 2008 at 12:41 p.m. (Suggest removal)
agree with veritas, marks comment, stop that useless ethonal crap, put up nuclear plans and sell our grain for 100$ a busshel.
Might also help if we learn to drive within our means to keep costs down even more instead say an expedition with one person to the grocery store for say just milk. anyone remember when gas used to be under a buck?
Posted by BenDoubleCrossed on June 6, 2008 at 1:17 p.m. (Suggest removal)
Are you willing to accept an ever declining lifestyle? Choose:
FOREIGN WARS OR DOMESTIC OIL
A rapidly devaluing dollar, aggravated by the cost of the War in Iraq, contributes to recent rapid increases in the price of gas. And if the trillion plus dollars the US spent fighting that war had been invested in a Manhattan like project to produce oil from known reserves in the Gulf of Mexico, the Continental shelf and synthetic diesel/gas from America’s abundant coal fields, gas would be $2 a gallon or less.
And reducing trade deficits keeps jobs in America. Every billion of trade deficit costs 13,000 jobs. $400 billion for oil last year: do the math.
Plus declaring American energy independence is the neighborly thing to do. It would place downward pressure on world oil prices by making more OPEC oil available for the UK, France, Japan, Turkey, etc.
Harness your anger at the pump. Call Congress and demand domestic production in this decade. Raise your voice or the oil companies and politicians will assume you are ready to pay even more.
http://www.house.gov/house/MemberWWW_...
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