S.D. average for regular up 6 cents since Friday
The San Diego Union-Tribune
A nearly two-month-long run of declining gasoline prices may be at an end.
The Auto Club of Southern California, which late last week noted that gasoline prices had declined for seven consecutive weeks, reported yesterday that San Diego’s average price for regular had risen to $3.25 per gallon, or 6 cents higher than Friday.
That compares with $3.35 per gallon one month ago at this time and $2.53 one year ago.
A survey by the club also indicated that 1.4 percent more motorists will be traveling around Independence Day this year compared to last. But despite the increased demand, Carol Thorp, a spokeswoman for the club, said it was difficult to determine the cause for the recent rise in gasoline prices.
“The petroleum markets are so volatile that all it takes is someone hinting about a shortage of supply to send prices higher,” Thorp said.
The California Energy Commission reported last week that gasoline production was up statewide but that inventories remained about 16 percent below last year’s levels, which the commission characterized as “unusually abundant.”
A spokeswoman for Chevron, one of the state’s largest gasoline suppliers, declined to comment on recent fuel price trends. Stephanie Price instead referred questions about gasoline costs to the Western States Petroleum Association.
A call to the association was not returned.
The petroleum industry typically blames rising gasoline prices on higher crude oil costs, along with supply and demand factors. The spot price of benchmark crude oil has risen about 3 percent over the past week, closing yesterday at $73.93, on the New York Mercantile Exchange.
Oil costs have risen nearly every day since June 20, when they closed at $68.94.
But the Foundation for Taxpayer and Consumer Rights in Santa Monica said crude oil prices had little to do with the recent runup. Analyzing data reported by the state energy commission, the foundation said profits for the refining sector of the petroleum industry appear to have soared at the expense of California’s motorists.
The commission has reported that California refinery costs and profits per gallon have more than doubled since January, rising from 30 cents per gallon during the first week of this year to 71 cents per gallon last week.
That increase goes well beyond any theoretical increase in crude oil costs for refiners, according to the foundation, because many companies extract their own crude at fixed costs or buy their crude under long-term contract.
“There is no explanation for these gasoline prices except excess profits or profiteering,” said Judy Dugan of the foundation.
Dugan added that attention was now focused on an energy commission investigation into the state’s high gasoline prices, which is set to conclude with a report in mid-August. Gov. Arnold Schwarzenegger ordered the investigation after prices in California spiked this year.
A recent survey by the federal Department of Energy found that average gasoline prices in California are 26 cents higher than those for the nation as a whole. The survey last week pegged average national cost for regular gasoline at $2.93, compared with $3.19 in California.
