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Gasoline prices set record in California
Another pre-spring spike to near $4 is projected even as demand drops
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More from County NewsGas prices set records in some parts of the state Monday in response to the soaring cost of crude oil, even as demand has declined.
And more record prices could be on the way. Oil industry analysts are projecting another spike in prices, which could drive up gas to nearly $4 a gallon in some areas before spring.
Ventura County's average for regular unleaded gasoline was $3.46 a gallon Monday, 3 cents less than the record set May 7, according to The Star's weekly survey of 10 area stations.
San Francisco hit an all-time high with a $3.63 average Monday, the most expensive gas statewide, according to the Automobile Club of Southern California.
Typically, gas prices increase during the spring in anticipation of more driving and as refineries switch from winter blends to more expensive summer blends, said Jeff Spring, spokesman for the Auto Club.
The early escalation this year is something different, Spring said. He attributed the early rise to oil prices "that remain stubbornly high."
Crude oil prices, which shot up in February and have hovered around $100 a barrel recently, account for most of the jump in retail gas prices over the past few weeks, said Doug MacIntyre, senior oil market analyst for the U.S. Energy Information Administration.
Oil futures hit a record $103.95 a barrel Monday, then retreated to close at $102.45 on the New York Mercantile Exchange.
Dollar slump aids increase
Oil's recent run into record territory has been driven by the dollar's slump against other world currencies. Crude futures offer a hedge against a falling dollar, and oil futures bought and sold in dollars are more attractive to foreign investors when the American currency is falling.
The dollar has been weighed down by concerns about the U.S. economy and the Federal Reserve's interest rate-cutting campaign. Lower interest rates tend to weaken the dollar, which fell Monday to a new low of $1.5275 against the euro.
The struggling dollar has prompted a wave of speculative buying by oil investors seeking a safe haven from the ongoing volatility of the stock market. Such speculation can become self-perpetuating, driving prices higher and attracting even more speculators.
Other factors, such as oil supplies, demand for gas, higher prices for ethanol and unplanned refinery problems, also can boost gas prices.
But things could be worse. The cost to fill up could be much steeper if consumption were higher, MacIntyre said.
According to the latest available figures from the State Board of Equalization, California motorists used 1.233 billion gallons of gasoline in November, down 47.6 million, or 3.7 percent, from the same period a year earlier.
Areas other than San Francisco also have topped $3.50 a gallon. AAA reported that San Luis Obispo County set a record with an average price of $3.61 a gallon Monday. Santa Barbara County posted the same average, although it wasn't a record there.
MacIntyre predicts that prices will surge an additional 25 to 40 cents by spring, and that some pockets of California could have $4-a-gallon gas. California averaged $3.49 Monday, the second highest nationwide after Hawaii's $3.53.
The national average Monday was $3.17 a gallon. Only New Jersey and Missouri remained at less than $3, both at $2.98, according to AAA.
Increases slow in recent days
If there's a silver lining, it's that the rate of increases has slowed the past few days, Spring said. In the past week, motorists have watched prices increase about 3 cents per day, but from Sunday to Monday, prices increased just 1 cent, he said.
In Ventura County, the average gas price has jumped 15 cents in the past week.
While diesel was once cheaper than gasoline, it has become much more expensive because of rising global demand, particularly in Asia. Diesel is already closing in on the $4 mark.
On Sunday, Ventura County's average diesel price reached a record $3.91 a gallon, according to AAA. It dipped to $3.90 Monday.
High diesel prices spell trouble for truckers and others who rely on the fuel, although trucking companies can add fuel surcharges for their services.
"That's something the trucking industry has to do in order to survive," said Julie Sauls, vice president of external affairs for the California Trucking Association.
Independent truckers already operate on a tight profit margin, having to pay a hefty sum for insurance and maintenance. A fuel surcharge would help, but there will be repercussions as that cost is passed on to consumers.
"Every consumer will pay more for the goods shipped," Sauls said.
— The Associated Press contributed to this report.
Posted by bombero42 on March 4, 2008 at 7:55 a.m. (Suggest removal)
Someone should ask "Deficts don't matter" Cheney about this. Of course, it's good for his oil friends.
Posted by cassandra on March 4, 2008 at 9:05 a.m. (Suggest removal)
Beyond the dollar's decline there are some finite limits that should not be overlooked even while pointing some well-deserved fingers at the disastrous economic policies of the neo-cons and their 3 trillion (recent total estimate) dollar wars on the public's credit card.
Aggregate supply of sweet crude flattened the last four years. Plainly put we have reached peak oil pretty much as Campbell, Heinberg, Rep. Roscoe Bartlett, et al. warned but which the industry continued to lie about.
We may never have access to the energy confabs Cheney and the industry had in 2001 but it is unlikely they shared with each other the same BS they were feeding the public. They had to know. And the varying rationales for our occupation of Iraq and threats to Iran are threadbare coverage for the aggression. Outside the bubble of the US mass media, everyone knows the war is mostly about oil without Greenspan telling us.
We will never have cheap oil again. And we are not prepared for it. This will affect every aspect of our economy--food, shelter, clothes, etc., not just transportation. We are in for a rocky transition to a different life-style. We need to think local, think community, and yes, get rid of the Congressional reps. that support the corporate ownership of our government and have hindered reform. Gallegly would be a good place to start.
Posted by Poppa on March 4, 2008 at 9:57 a.m. (Suggest removal)
Everytime you fill up at the pump and pay these high prices you are basically paying a tax to the republican party! Bush and Cheney let the oil companies write the energy policy for the U.S. in exchange for part of that money flowing into the GOP coffers! Want low prices at the pump? Vote Democratic this June and November!
Posted by harlan on March 4, 2008 at 10:06 a.m. (Suggest removal)
According to the Energy Bulletin, ( http://www.energybulletin.net/29925.html ) the biggest buyer of petroleum in the world right now is the U.S. military.
They buy and use more than the rest of the U.S. combined.
They buy more than China.
No one on Earth buys and uses more petroleum than our military. No one.
This is the main reason that petroleum prices are so high. There are other factors, of course, but in a free market economy supply and demand sets the price of the commodity in question, petroleum in this case.
Right now, the U.S. military is fighting in several places to secure the fuel supply for themselves and the rest of America. If you believe that they're fighting for any other reason, you're deluded. There were and still are far worse dictators and scumbags than Saddam Hussein, and we've turned a blind eye to their activities because they either had no petroleum or because they had petroleum and they were willing to sell it to us, or they were willing to sell us the right to come in and produce it ourselves. We buy a lot of petroleum from a lot of really bad people, and we just call it business for as long as they're willing to deal with us and they don't get in our way.
We are using an amazing amount of petroleum to secure the amazing amount of petroleum we use, and for as long as we continue to do so, the price will remain high and get higher. For as long as this continues, expect the price of everything else to remain high and get higher, too. Is there anything at all wrong with this plan?
Rather than build a new Wal-Mart, maybe the City of Ventura should be trying to get the 99 Cent Store people to build a superstore at the site of the old K-Mart, because in a few years it may be the only place we'll be able to afford to shop for food. Too bad they won't be selling 99 cent gasoline.
Posted by jwbaja on March 4, 2008 at 10:23 a.m. (Suggest removal)
Doc- please tell us how the Democrats are going to lower gas prices without oil going down to $50/barrel again. $100/barrel oil and the resulting sales and excise tax results in a $3/gallon raw material cost for gas before it is shipped, refined, piped, trucked, and pumped into your car.
Just more fantasy BS the left is feeding the public these days to get votes.
Posted by Legal_American on March 4, 2008 at 10:35 a.m. (Suggest removal)
Hillary Clinton had announced, "I lent my campaign $5 Million of my own money." How many people have an extra $5 million in the bank? Let us not forget how she got that money! For unknown reasons, she and the Democratic Party received an undisclosed amount of contributions from Marc Rich, a fugitive to whom President Clinton granted a full pardon in the last hours of his presidential term. Rich is the guy who, some would say, is partly responsible for our outrageous gas prices today. He supplied oil companies in America with untaxed oil for many years to make his fortune. Once he was caught, the oil executives had to slowly raise the prices to get back to their usual profits.
Former President Clinton"...willfully provided perjurious, false and misleading testimony to the grand jury" and made "...corrupt efforts to influence the testimony of witnesses and to impede the discovery of evidence". This cost Americans an estimated $40 million. He also granted clemency to 62 convicted felons, mostly drug dealers and fraud scammers on his way out. He is, in my opinion, the worst president we've ever had. http://www.usdoj.gov/opa/pr/2000/Dece...
Posted by Poppa on March 4, 2008 at 10:55 a.m. (Suggest removal)
A month ago two republican senators and two democratic senators wrote Bush and asked him to quit adding oil to the strategic reserve because it is already full! Bush is putting oil in the reserve to drive up prices! Dems would quit adding oil and then sell 10% of it, that would drive down prices at the pump and the money could be used to develop new forms of energy here in the U.S. and that would help lower prices. Anymore questions?
Posted by cassandra on March 4, 2008 at 11:44 a.m. (Suggest removal)
Democrats are only fractionally less owned by corporate interests. That fraction is worth voting for in some cases but don't expect a quick fix there.
For some really useful things:
a. use your bike to shop when feasible. Or walk.
b. pressure the city to make bike travel safer and easier.
c. work with neighbors to provide local food supply. Not only is local better for you, it cuts out huge transportation costs. Home grown and CSAs can help.
d. pressure to improve our cruddy railroad system.
e. use and promote public transportation.
f. consolidate errands for efficient auto fuel use.
g. then the obvious--don't buy a Hummer or other gas guzzler.
h. use neighborhood vans or car pool.
i. support population and development limits This is no temporary thing.
Posted by THX1138 on March 4, 2008 at 12:03 p.m. (Suggest removal)
@Cassandra: Great suggestions... If only more would consider the affect of supply & demand!
I wonder how that many that post negative comments are still driving suv's[?]. If your vehicle [whatever it is] gets single digit mpg - you're part of the problem not the solution...
Posted by cassandra on March 4, 2008 at 1:38 p.m. (Suggest removal)
A dose of realism
http://discuss.epluribusmedia.net/nod...
Posted by jwbaja on March 4, 2008 at 1:47 p.m. (Suggest removal)
Doc: Bush stopped filling the SPR in 2006 to try to alleviate high fuel prices. Didn't work. Next pipe dream?
Posted by Poppa on March 4, 2008 at 1:55 p.m. (Suggest removal)
Sorry but your facts are wrong, he never stopped filling it and still is. I guess you are calling those two republican Senators liars? Why is it Cheney is afraid to release the minutes of the meeting he had with the heads of the oil companies when they wrote the energy policy for the U.S.? I thought republicans believed in open government, or is that only a slogan the GOP uses to win votes? If Cheney had nothing to hide why is he hiding?
Posted by peacemom on March 4, 2008 at 2:05 p.m. (Suggest removal)
Cassandra, good ideas! Caucasiod, maybe you could ride one of your horses to do your errands.
Posted by cassandra on March 4, 2008 at 2:13 p.m. (Suggest removal)
Thanks.
Maybe the dude with the horse is in better shape than the rest of us if he can get the horses to pull a plow.
Another dose of reality, this time for those who don't read that well:
http://www.youtube.com/watch?v=dR7h8N...
Posted by jwbaja on March 4, 2008 at 3 p.m. (Suggest removal)
Since we are handing out reality doses today, about that "neo-con" war:
http://www.bercasio.com/movies/dems-w...
Posted by desolder on March 4, 2008 at 3:05 p.m. (Suggest removal)
CAUCASOID, how about growing up. You're making us SUV driving horse trailer owners look bad. If you can afford the expensive luxury of having horses, a trailer, and a dually, then chances are that you can afford higher gas prices as well. I myself have stopped driving my Suburban around town. I only use it WHEN IT'S ACTUALLY NEEDED - for towing my GF's horse trailer and hauling stuff. It's just too darn expensive to use as a daily commuter.
Cassandra - those are excellent ideas. Now that the weather is warmer, I've been biking to work to save on gas. As an added bonus, I get some fresh air and a relaxing bike ride before hitting work.
Posted by devilangelhawk on March 4, 2008 at 7:10 p.m. (Suggest removal)
It just happens people...
Posted by del on March 5, 2008 at 7:10 a.m. (Suggest removal)
We should make the national speed limit 55mph as was done in the 70s. A little conservation will do nicely.
Posted by devilangelhawk on March 5, 2008 at 7:28 p.m. (Suggest removal)
It really doesnt matter what speed the speed limit is at...its the speeding up to get to that limit or higher and city driving that sucks the most gas.
Once you level out at a speed, your gas mileage goes up..and you use less gas!
Posted by del on March 6, 2008 at 7:16 a.m. (Suggest removal)
Level out, yes. Approaching optimum, no. It is a simple physics problem.
Posted by Face on March 6, 2008 at 9:07 a.m. (Suggest removal)
We spend an average of 1 dollar more at the pump than other states because of CA state and local taxes. And we all know how much we benefit from more and more taxes in this state.
Posted by ReadMyLipsNoNewTaxes on March 6, 2008 at 1:21 p.m. (Suggest removal)
"We spend an average of 1 dollar more at the pump than other states because of CA state and local taxes. And we all know how much we benefit from more and more taxes in this state."
Define 'we'.
There are studies that show if we were to eliminate all of the illegal aliens and anchor babies the state budget would be in the black, even if taxes were cut %20
Posted by THX1138 on March 7, 2008 at 12:38 p.m. (Suggest removal)
Unless you're hauling something consider leaving the SUV and 3x3-4x4 [full-size truck] at home.
If we can reduce demand the prices will come down for all...
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