Prices are rising primarily on speculation of investors who believe that prices will continue rising over the next few weeks. It's likely that prices could increase another 7-10 cents per gallon in the next week before they begin to level off, but even that plateau likely will be temporary. |
Prices have fallen 25 percent since their record highs in September. After the New Year, motorists can expect prices to begin rising as refineries cut back production to conduct their annual maintenance and begin the process of producing the summer blend of gas, which must be completed by the end of February. |
Prices remain on the rise but there is hope that we may be nearing a peak. Wholesale gas prices have averaged about $2.60 per gallon for the past week. Taxes add about 60 cents to that, transportation and dealer profit is another 5-10 cents. Prices in the L.A./Long Beach area could peak at $3.25-$3.30 by mid-May then they could decline after Memorial Day. |
Prices rose 4 cents today (in San Diego), and that is not unusual lately. There is profit-taking; no one can avoid that conclusion. |
Prices went up throughout Southern California this past week, but not at as rapid a pace as we've seen during other gas price spikes. It's likely that increases will continue for at least the next few weeks. |
Refiners are selling off all supplies of winter grade fuel in advance of next Tuesday's deadline. That has put extra supply on the market, sending prices lower. Motorists can expect to see prices stay near current levels for a couple of weeks. After that, with the extra winter grade supply used up, motorists should expect more upward pressure on retail gas prices. |
Since then we have seen a gradual increase until prices are now equal to a month ago. |
Since then we have seen a gradual increase until prices are now equal to a month ago. We expect prices to continue higher during the spring, but the rate of increase depends on the amount of speculation that occurs. |
Southern Californians have reduced their driving significantly in the past couple of months. Additionally across the nation, demand for gas is down 2 percent from this time last year. |
The month-to-month gas price hike was driven primarily by increasing oil prices and speculation over adequate production. Higher gasoline and oil inventories have eased these concerns. However, when gas stations begin to sell the more expensive summer blend fuel in March, prices may start to increase again. |
The relationship between supply and demand is relatively balanced in California, so normally we should see stable prices. However, speculators in oil and gasoline markets have kept prices high, and that has filtered down to local gas pumps. The trend for higher gas prices is expected to continue for the next several weeks. |
The speculators on the market are pushing the price up - they're worried about oil coming from Iraq, they're worried about what Iran could do to affect the price, they're worried about labor unrest in Nigeria. |
This isn't a free speech issue. You can't just go on and say anything about anybody ? and keep your job. |
We don't know if that's going to cause some people to change their minds. Historically when gas prices have gone up, people have not changed their minds. |
We hope drivers are aware that the California Highway Patrol and law enforcement agencies are likely to be using extra patrols to look for drinking drivers during holidays. |