Supply Worries Push Gas Prices Higher; U.S. Average Is a Record

High-cost oil sent California’s average gasoline price to $2.312 a gallon and pushed the U.S. average to a record $2.109 for a gallon of self-serve regular gasoline, the Energy Department said Monday.

Drivers in California paid 2.5 cents a gallon more on average than they did a week ago, while the average U.S. retail price rose 5.3 cents, according to the weekly gas station survey by the Energy Information Administration, the Energy Department’s statistical arm.

California’s gas average is 22.9 cents higher than at this time last year but is still 9 cents short of the all-time high set in October. The U.S. average is up 36.6 cents from a year ago.

That’s of little comfort to Jesus Granados, a maintenance worker who said his employer didn’t cover the cost of rising fuel costs.

“The war is over,” Granados, 30, said while filling up his Jeep Cherokee at an Echo Park Arco station, where regular was selling for $2.29. “I don’t see any reason why [gas] shouldn’t be cheaper.”

A few pumps away, Clara Quinones, 49, agreed as she watched her son fill her Mazda 626.

“We pay too much here in California,” Quinones said. “I only drive when I have to.”

Analyst Tom Kloza said oil prices were being driven up by what he called “petronoia” -- the expectation that oil supplies would be unable to meet soaring demand.

“Global crude oil markets are overheated,” said Kloza, of the New Jersey-based Oil Price Information Service, which tracks fuel prices. “Frankly, this market is going to have a little bit of a reality check some 30 to 90 days out.”

In the meantime, oil is cruising in record territory in futures markets. On Monday, light sweet crude for April delivery fell 10 cents to $56.62 a barrel on the New York Mercantile Exchange.

Oil accounts for about half the price of a gallon of fuel. Recent oil price increases mean that gas prices will continue to rise at the pump, perhaps an additional 10 cents to 15 cents during the next few weeks, Kloza said.

Carol Thorp of the Automobile Club of Southern California urged drivers to reduce fuel use by making sure their vehicles’ oil is changed regularly and tires are inflated properly.

“Try to take an alternate form of transportation once or twice a week and try to combine your trips -- figure out if you can get you errands done at one mall,” Thorp said. “If you put all these things together, you can make a significant dent in the amount of gasoline used in California.”

Some businesses that rely heavily on gasoline have already made adjustments.

Jackie Gudino, who owns Betty Jane Florist in Echo Park, said her fuel bill had risen 30%, making her reluctant to deliver flowers to West Los Angeles and Beverly Hills. Instead, she calls other florists to make the deliveries.

“The gas goes by pretty quick,” Gudino said. “It’s money we’re losing.”