Gas prices up 11 cents in California
Retail gasoline prices jumped by more than a dime over the last week in California and nationwide as oil rose to a new high for the year. But analysts had some reassuring words: Gas prices should be nearing their peak for the year, and a repeat of 2008’s record run-up isn’t anticipated.
“It would take a geopolitical disaster, an earthquake or major hurricane damage to drive prices much higher than they are now,” said Tom Kloza, chief oil analyst for the Oil Price Information Service in Wall, N.J.
That’s despite another boost in oil prices Tuesday after the Conference Board reported unexpectedly strong consumer confidence. Oil for July delivery rose 78 cents, or 1.3%, to $62.45 a barrel.
Pump prices also climbed to new highs for 2009. The average price of a gallon of regular gasoline increased 11.3 cents in California to $2.637 on Monday, the Energy Department said Tuesday, a day late because of the Memorial Day holiday. The government’s weekly survey of filling stations also showed that the national average had climbed 12.6 cents a gallon to $2.435, led by a jump of 16.9 cents in the Midwest.
But averages are misleading. In California, prices ranged Tuesday from $2.43 a gallon in Bishop to $3.29 in Goleta, according to GasBuddy.com.
But it doesn’t always pay to shop around if you wait too long to start shopping.
After driving past $2.72-a-gallon gas, Jeremy Moss, a Los Angeles resident who works for a plumbing company, resolved to buy at the next station because his gas gauge was nearly on empty, he said. It was the Shell in downtown Los Angeles, selling regular for $2.85.
“It’s very annoying,” said Moss, who bought a few gallons for his Honda Civic DX. “I’m going back to that station I passed up before.”
Still, it’s better than last year. By this week in 2008, a gallon of gasoline was selling for an average of $4.099 in California and $3.937 nationally -- and prices were still rising, Energy Department records show.
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