Gasoline Prices in California Jump 10 Cents in One Week

California motorists are a dime closer to $2-a-gallon gas than they were a week ago, thanks to high crude oil prices, refinery problems and fear of shortages.

In California, the average price of self-serve regular unleaded gasoline jumped 10.6 cents a gallon to $1.739 in the last week, the Energy Department said Monday.

Nationwide, self-serve regular unleaded was $1.527 a gallon, a 2.6-cent increase from the week before, according to the Energy Information Administration, the statistical arm of the Energy Department. The EIA surveys 800 gasoline stations each week to determine average gasoline prices.

That U.S. average, up 55 cents from a year ago, sets a record in nominal terms. But in real terms using current dollars, gasoline is still cheaper than the March 1981 inflation-adjusted average of $2.743 a gallon.

The EIA predicted last week that the price of regular unleaded gasoline could push $1.80 a gallon nationwide--and even more in California--during the summer driving season.

The Lundberg Survey of 10,000 gasoline stations, released Sunday, found that San Francisco was the most expensive city in the nation for gasoline at $1.83 a gallon for self-serve regular unleaded, the most popular grade. Cheyenne, Wyo., was the cheapest city at about $1.39 a gallon.

The average price of self-serve regular unleaded in California has already passed last year’s peak of $1.62 a gallon. But analysts say as long as the economy is good and people have jobs, motorists will pay the price.

In fact, California gasoline consumption grew 2% in the first six months of 1999 despite the rapidly increasing gasoline prices that motorists were paying then, state Board of Equalization figures show.

Gas prices have been soaring for weeks because of high oil prices. But recently, several West Coast refineries have encountered equipment problems, said EIA economist Jake Bourazian, and that will only ratchet prices higher.

With spot gasoline prices running about $1.35 a gallon in Los Angeles, “you’ve got more pass-through coming your way,” he said.

Taxes add about 48 cents a gallon to California prices, and dealer markup can run as much as 8 cents a gallon, for a potential price of $1.91 a gallon at current spot prices.

On Monday, benchmark West Texas intermediate crude oil for delivery in April settled at $32.02 a barrel, gaining 26 cents.

Meanwhile, Energy Secretary Bill Richardson said he has been making an average of three telephone calls a day to ministers of the Organization of Petroleum Exporting Countries as the group’s March 27 meeting approaches. The cartel will discuss increasing production, but Richardson said he has received no promises that any increase will be approved.

Even if OPEC decides to produce more oil, it could take several weeks to affect the price of gasoline, said Camarillo-based gasoline analyst Trilby Lundberg. Adding to the uncertainly are low inventories of gasoline and increased demand for fuel during spring and summer, she said.

For some gourmet gas guzzlers, $2 a gallon is already a reality. Lundberg’s latest survey found that the average price for the ritziest type of gasoline, full-service premium, was $1.98 a gallon.

* CAMPAIGN SPARK: Political candidates are bracing for a brouhaha over gas prices. A16

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Gas Pumps Up

The average price of self-serve regular unleaded hit a new high in California. Prices have been rising because of high oil prices, low gasoline inventories, refinery problems and fears of shortages. Weekly prices and latest:

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Monday: $1.739 per gallon

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Source: Energy Information Administration