Marin Independent Journal (California)
Aghast at the price as she filled up her Nissan Pathfinder at the Northgate Valero station in Terra Linda, Randy Toll-McKillop of San Rafael said she will curb her driving habits.
“It is disgusting,” Toll-McKillop said of the $2.95 per gallon she paid for regular unleaded gas. “We are not going to be able to run our son around as much. He will have to ride his bike.”
Still, Toll-McKillop said she was coming right back to Valero to fill up her other vehicle, a Nissan pickup truck.
“I don’t want to pay $3.50 tomorrow so I am going to buy gas today,” Toll-McKillop said. “I think the price will go up again and again. And I have a feeling it will go up to $4 before the end of summer.”
All pumps point to Toll-McKillop being right as experts say there will likely not be a drop any time soon.
“From the consumer perspective, the near future looks pretty bleak with prices continuing to rise between now and Memorial Day,” said Sean Comey, spokesman for AAA of Northern California. “As bad as it is now, it is probably going to get worse.”
Prices at the pump vary across Marin.
A Chevron station in Terra Linda was charging $3.06 per gallon for regular unleaded gas Friday, on par with the statewide average of $3.05 as reported by the AAA. The national average was $2.86.
The Mill Valley Union 76 was at $3.05. Country Club Shell in Novato, Alpha Gas in Fairfax and Fairfax Gas were all $3.19.
Mill Valley Arco was still charging $2.83.
“We always try to keep our price really low,” said Arco employee Firaf Kassis. “We are working with a very low margin of 4 to 6 cents.”
Several factors are pushing gas prices higher.
The cost of crude oil, the raw material from which gasoline is made, has gone up dramatically, hitting $75 a barrel Friday, up from about $69 less than two weeks ago.
“Every day brings a record-high price,” Comey said. “The previous record was set in the aftermath of Hurricane Katrina last year.”
Comey noted that after California switched its gasoline additive from MTBE to ethanol, the rest of the country switched, so prices climbed. In addition, consumers continue to buy gasoline with demand for fuel typically rising by about 2 percent every year. The time of year will likely contribute to increased use.
“As weather gets warmer, people tend to drive more, and as demand increases, prices generally rise,” Comey said.
In Marin, drivers seem to reflect this trend.
Elisabeth Cohen of San Rafael, who paid $49 at Valero to fill her Jeep Laredo, was over the sticker shock as she pumped gas Thursday, saying driving is a function of life.
“You have to go buy food. You have to pick up the kids from school,” Cohen said. “You can’t stop living.”
The California Energy Commission reports that production of gasoline and diesel at in-state refineries fell, tightening the market and causing spot prices for California gasoline to jump 22 cents between April 10 and April 17.
The main cause of the price spike is increased profits for oil companies, said petroleum industry consultant Tim Hamilton, in a study commissioned by the Foundation for Taxpayer and Consumer Rights of Santa Monica.
Independent gas station owner Sue Ferraro, who owns Rino in Fairfax, said she feels the pinch, too. She sells a gallon of regular for $3.27.
“I receive gas at one price, plus we have sales tax which is about 25 cents per gallon, and from there, the credit card charge is about 10 cents per gallon,” Ferraro said. “Then what is the profit, 10 cents? What can I pay with that? I cannot even pay one employee with that.”
Ferraro said large companies that own many stations, buy their own gas and have their own delivery trucks get better prices.
“We are just one station. Therefore, we cannot buy our gasoline in big contracts,” Ferraro said.
To reduce gas consumption, the AAA recommends telecommuting if permitted by employer, taking public transit or carpooling.
“Shop around for the best value on gas,” Comey said. “Don’t always go to the same station.”
Routine maintenance on a car can make a difference as well.
“Having a dirty air filter and underinflated tires could easily be boosting your gas bill by 10 percent,” Comey said.
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Contact Carla Bova via e-mail at [email protected]
