Gas prices are $3.29 a gallon in San Marcos on Wednesday.
WALDO NILO Staff Photographer
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By: CHRIS BAGLEY - Staff Writer
Oil hits $100 a barrel; gas reaches new January highs | ∞
Gas prices are $3.29 a gallon in San Marcos on Wednesday.
NORTH COUNTY -- Drivers winced on Wednesday as pump prices surged to levels never before seen in January, traditionally the off-season for gasoline demand.
Regular unleaded was going for an average of about $3.28 a gallon in North County and $3.32 a gallon in metropolitan San Diego on Wednesday. Gas prices in North County have risen about 55 cents a gallon since early January 2007, according to a weekly survey of 181 local stations for the North County Times prepared by the Utility Consumers' Action Network.
Crude-oil futures traded above $100 a barrel for the first time in history, prompting at least one pair of strangers to commiserate at the pump.
Drivers interviewed Wednesday said they had begun making bigger changes in their lifestyles over the last year, though long commutes and frequent fill-ups are still the norm.
Temecula-area resident Gary Shiebler said rising gas costs had driven him to buy a blue Ford Ranger pickup truck Wednesday morning and sell his Chevrolet Suburban, which he said used 14 miles per gallon.
"On a good day, with wind pushing it downhill," he added, as he filled the Ranger's tank Wednesday afternoon. "This Ranger will get 25 miles per gallon, and that's a big deal."
"We know gas is going to hit $3.75 or $4 a gallon," Fallbrook resident Dennis Rayford said, standing next to him while filling up his Nissan Maxima sedan. "I do very little driving now. We used to get out and go cruise. Now you have to think about how much money it's going to take."
And Shiebler and Rayford were getting off relatively easy. The Arco station at Washington Avenue and Escondido Boulevard was selling regular unleaded for $3.20 a gallon, mirroring two other stations across the intersection.
Analyst Charles Langley, who conducts the price survey, said that's probably not enough for a station to break even, given the wholesale price of $2.66 in Los Angeles and the various federal, state and local taxes that pile up on top.
Retailers, particularly independent dealers, are getting squeezed between rising wholesale prices and increasingly price-conscious drivers, he said.
The latest squeeze has come in the last week, he said.
Even refiners' profit margins have slimmed to a range of 30 to 45 cents a gallon from roughly $1 last spring, Langley said. Pump prices will almost certainly rise as refiners try to recover the earlier margins, he said.
Light, sweet crude oil for February delivery rose to $100 a barrel on the New York Mercantile Exchange on Wednesday, an exchange spokeswoman said, before it slipped back to settle at a record close of $99.62, up $3.64 for the day. Crude oil accounts for a little more than half the retail price of a gallon of gasoline, according to the Energy Information Administration; that portion has been edging up in recent years.
Rising energy prices were cited as a contributing factor in disappointing sales for the just-ended holiday season, along with the continuing slump in housing and an overall uneasiness about the economy. They could also make for a gloomy summer in San Diego County's economy, which is heavy on tourism and dependent on commuters, said Kelly Cunningham, an economist with the San Diego Institute.
"It will show up in the tourist attractions, the SeaWorlds, the zoos," Cunningham said.
Still, economists say the jump in oil prices is generally less devastating than previous surges because incomes have risen faster on average than energy costs over the last 30 years. Adjusted for inflation, California's gas prices in 1981 were comparable to prices drivers are paying today, according to data from the California Energy Commission.
Some analysts predict the booming economies of China and India will push oil prices well past $100 a barrel, eventually prompting consumers and businesses to cut back on their use of gasoline and products whose prices are tied to it.
Langley said that began to happen last spring.
"When we approached $3.50 a gallon, on average, consumers started caring," he said. "People are making long-term changes in their driving habits."
For many, those changes are only at the margins. Norb Schulz, a Borrego Springs retiree who drove into Escondido for lunch Wednesday, said he had sold his Toyota 4Runner in October and bought a Toyota Highlander, a smaller sport utility vehicle whose gas mileage is a couple of gallons more efficient.
"I've just got to work it in," Schulz said of the higher fuel costs. "We watch our trips -- always did."
-- The Associated Press contributed to this article. Contact staff writer Chris Bagley at (760) 740-5444 or cbagley@nctimes.com.
The sooner it gets to $5.00 the better wrote on Jan 3, 2008 1:02 AM:I pray for higher gas prices, the goverment should tax it to $5.00 a gallon, then we will see some innovation and savings.
Jaque wrote on Jan 3, 2008 5:49 AM:Only the benighted see quarterly record-high prices (and profits) as a surprise. There is no "off season" anymore. Once Katrina got it up to $3, they knew the ceiling was broken so $3+/gallon gas was here to stay. Just remember folks, its not a scarcity issue here! Its because they can!
Nadine wrote on Jan 3, 2008 6:47 AM:These escalating gas prices are making the Splinter look better every day!
Robert24 wrote on Jan 3, 2008 7:56 AM:To "The sooner..": Why do we have to have the government tax it up to $5.00 a gallon for anything to happen? That makes absolutely no sense. This is as close to a monopoly as legally possible, with only a few fuel companies (posting record profits) and suppliers, who all keep talking and maintaining high prices. Greed, gouging, raping; call it what you want. Innovation, or lack of, as well as government taxation, has nothing to do with it. It boils down to taking advantage of the consumer because they have us over a barrel (no pun intended).
Looking Good wrote on Jan 3, 2008 8:05 AM:I hope for $7 per gallon like Europe. People will switch their Hummers (10mpg) for Priuses (40+mgg), less freeway congestion, less pollution, less freeway construction, quieter envirnment, more use of walking, bike riding and public transportation. I hope we see $5 per gallon this summer!
CR wrote on Jan 3, 2008 8:14 AM:The biggest crooks are the refineries, they make obscene profits on each gallon of gas. With the oil industry being the biggest "donors" (read=bribers) to Congressmen and women, there is NO chance of Congress ever doing anything except watching their political buddies reap in more profits, billions each QUARTER! Watch gas pass $4 a gallon this spring, and maybe even go for the $5 a gallon that the industry announced that they want by late this year. Eventually we will all be working for BIG OIL--going to work each day just to pay for our fuel costs.
Figures wrote on Jan 3, 2008 9:18 AM:Looking Good and The Sooner... Get in the real world. Most people have to commute to work, shop etc. Also many heat their homes with oil so these prices are only hurting the working folks which is obviously why you have your attitudes. There is plenty of oil and we should be using it from Alaska to Texas. All we need is the environuts to get out of the way. BTW, Hydrogen cars are out now because the environuts have caused a false water shortage. Goes to show anything that can save oil etc they will figure some way to discourage. Keeps their donations up. These prices are because our Congress is afraid to put it to the oil companies AND open up new areas for drilling. Once again the elitest win!
Carter: wrote on Jan 3, 2008 9:27 AM: I suppose wise and intelligent gasoline users are making adjustments to offset the rise in gasoline prices and those adjustments will become habit and are here to stay. And the adjustments they make are not noticeable to others. Then there are those not to intelligent people that make the streets and highways their playgrounds whose antics will always be noticed. I am talking about those people who insist on traveling at speeds of 80 and 90 miles an hour, peeling rubber at stop signs, modifying their autos to make irritating noise, etc. All those things, and many others not mentioned, squander gasoline. You do not get anything for nothing in a gasoline engine. Even the making of noise cost money. Noise does not assure power - it squanders it. it takes energy to create the noise and lots of misused gasoline. But of course our spiraling economy will absorb the increases. The union rank and file will insist on an increase in wages, the wholesaler will raise his prices, as will the retailer, and so on. And gasoline prices will continue to take two steps forward and one step back. The oil companies are probably manipulating the public to increase their profits, but nothing will be done about it except a lot of complaining.
Daren wrote on Jan 3, 2008 9:36 AM:I hope gas prices keep rising. It will mean nothing but good things for the environment and the American waistline.
ed wrote on Jan 3, 2008 10:25 AM:The corrupt oilmen in the White House are laughing all the way to the bank.
Norco wrote on Jan 3, 2008 10:31 AM:Nothing forces change like a direct hit to the pocketbooks! Name calling does nothing. I really just want change. The noise reduction would be wonderful.
huh? wrote on Jan 3, 2008 10:56 AM:We're dyin here - working in Pasadena living in Temecula $1070 per month for 2 cars! I say work from home - more 4day work weeks this is insane. $5/gallon says Im hightailin it outta sunny CA and livin in a van down by the river...
Ron wrote on Jan 3, 2008 11:37 AM:I thought the Dem's promised to lower my gas price? Didn't they take back the tax break for drilling and exploration?
Oh... that's why.
If you have to ask.... wrote on Jan 3, 2008 12:06 PM:the gas mileage of a Hummer you shouldn't be driving one. I drive one because I can! Those who criticize me are jealous of my wealth and status. It's their own fault that they can't drive one....they haven't worked hard enough to get one. Besides the world needs ditch diggers and grocery store clerks too.
OH WELL, wrote on Jan 3, 2008 12:33 PM:It is, what it is! Get used to it. The kicking on the little guy just continues. Most rich people that have the money to drive large gas guzzlers, really don't give a hoot what gas costs. The everyday working person will be the one who hurts the most. The poor working stiff will foot the brunt of the cost for everyone. If you owned a 120ft boat, you don't have ask what fuel costs. Same with the large vehicles. The entire nation has gone to crap with just about everything included. Open borders/nukes/Bin Ladin/War/Airlines/travel of any kind.
My grandkids will be fighting this stinking war!
Mike wrote on Jan 3, 2008 12:55 PM:Gas companies paid good money to put this administration in office. Seems only fair they should get a good return on their "investment".
Wealthy wrote on Jan 3, 2008 1:16 PM:To if you have to ASk-
If you truly drive a hummer, I laugh in your face. You all look like a bunch of chumps. The true upper class no better than to buy a Hummer. Hummers are for wantabees.
Michael wrote on Jan 3, 2008 1:19 PM:Does anyone know when Old Grove Road in Oceanside is going to open?
Derek wrote on Jan 3, 2008 1:28 PM:Make the gas tax revenue-neutral by passing the money to the working class in the form of lower income taxes.
subsidized gas sucks wrote on Jan 3, 2008 2:32 PM:I want the government to tax gas another $3 a gallon, bring it up to $7 a gallon to pay for the true cost of of gas. The cost is much more than what we pay at the pump. We're spending @12 billion a month to stabilize the mideast to ensure our oil supplies. This cost should be paid by the consumer, not the taxpayer. As a taxpayer, I'm sick and tired of subsidizing oversized egos, driving oversized Suvs and trucks.
to wealthy.... wrote on Jan 3, 2008 2:33 PM:Your spelling reflects your common upbringing. In private elementary school, we learned the difference between "know" and "no". Your witless comments also acknowledge your plebeian status. Go back to work, those toilets won't clean themselves.
Gene wrote on Jan 3, 2008 2:34 PM:Public Transportation... is the real problem. If there were good PT, more people would use it. I've been to London, New York, Chicago, etc... the have great PT and that's what I used. Good luck here... it will take you 3 transfers and 2 hours to get to work. Joke.
Ron wrote on Jan 3, 2008 3:20 PM:Oh Well.. meet Gene.
Gene has your answer about the "little guy" who will get clubbered by high gas prices, will get around. Those loving central-planning Stalinists have built you a choo-choo to ride! See! They are looking out for you! Of course... they will determine when you ride, how long you'll wait, whether you'll stand in the rain, whether there will be enough light at night to keep you safe... but hey, it's there.
Also Wealthy wrote on Jan 3, 2008 3:29 PM:To If You Have to Ask: Hummers and their ilk are ridiculous. You should be embarrassed to be seen polluting our roadways and air in that gargantuan, belching hunk of metal and plastic. Feed your ego some other way, ok, and drive something that pollutes minimally.
Curtis wrote on Jan 3, 2008 4:21 PM:I hope gas goes to $5 a gallon it'll make my commute easier. Less cars in the way of my motorcycle.You in the hummer, I bet you have a little one.
Pay Back!! wrote on Jan 3, 2008 6:02 PM: All you Clowns who Voted Bush and his Circus people in deserve eveything that's happened. The only real down fall is you took INNOCENT CITIZENS with you. We all didn't deserve this, but Bush Cheated on the Election why not cheat the American People for year's.
John E wrote on Jan 3, 2008 6:09 PM:Get used to it, gang. The days of cheap petroleum-based energy are over. Do more walking and bicycling and less driving. Join a carpool. Try public transit. Next time, remember the lessons of 1973 and 1979 and buy a fuel-efficient vehicle.
Accept the ClifBar 2-mile challenge by replacing your shortest, least fuel-efficient (and hardest on your car's powertrain) driving trips with walking or bicycling trips. Save the car for what it does best -- longer trips.
Hummer haters wrote on Jan 3, 2008 9:15 PM:Don't drive one. I drive a Jeep, a real one, one that turned 19 on the way home from this year's Baja 1000. The Hummer is no different from the Prius, or any sportscar for that matter: they are all about show. Take your SMUG and shove it.
Car maker wrote on Jan 3, 2008 9:28 PM:19 years old. Whoa - that old?.... not impressed. It’s really not that old, only means it was made in 1986.... Which means it’s a Chrysler piece of trash. Whatever! It’s no wonder Toyota will be number 1 in America soon. We haven't built good cars since the 60s.
Gregg wrote on Jan 4, 2008 4:27 PM:I only smile when I hear the complaints re: rising gas prices ... you guys have nothing to whine about when you understand what we have to pay for gas in Northern Canada - $6.20 a gallon ... THANK YOU you folk who are SUPER WHINERS ... you have no idea what your gas consumption has done for the rest of N. America...
blessings,
from n. canada
Hummer not wrote on Jan 4, 2008 6:43 PM:I don't own a Hummer.
The H2, H3, H4 etc is the same as any other SUV - a standard frame with a Hummer looking shoebox bolted on.
The only real Hummer was the H1 and they quit making the public version.
The H3 is likely to get 14-18 mpg which is the same or better than a Toyota 4Runner... You can check the new and old mpg at fueleconomy.gov
If you have gas money to burn, get a Lamborghini Murcielago Roadster, 12 cyl, 6.5 L, Man(6) 8-13 mpg
Canada wrote on Jan 6, 2008 9:51 AM:The comment from Canada is funny. Canada is the largest exporter of oil to the U.S. Nice to see they rape their own citizens as well as the U.S.
Frank wrote on Jan 8, 2008 8:30 PM:If the true price of automobile transportation was paid at the pump instead of on April 15th we wouldn't need to build anymore freeways. You see much of our war spending pays to subsidize the price of crude oil for the refiners, and much of your general taxes pay interest on bonds to build and maintain roads. By hiding the costs in taxes that people cannot avoid, we make driving artificially cheap and alternative undesirable by comparison.
George wrote on Jan 8, 2008 10:00 PM:Hi, Frank! If our gas taxes weren't being hijacked to non-freeway purposes, they would fully cover the cost of constructing and maintaining the roads. According to the Regional Transportation Plan, only 12% of the $58 billion budget will be used to widen freeways used by 85% of travellers. If public transit was honestly funded, both would be doing well.
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