By Eric Fetters
Herald Writer
Political events around the globe and a bump in demand have combined to propel the price of gasoline upward by nearly 21 cents a gallon during the past month.
The average price for self-serve regular unleaded gasoline in the Seattle-Bellevue-Everett area has soared from $1.28 a gallon in mid-March to just under $1.49, according to AAA Washington.
"The prices took off a couple of weeks ago, but they somewhat have reached a plateau, so we haven’t seen much activity the past week or so," said Janet Ray, spokeswoman for the local AAA office.
World events continue to threaten the recent easing in the price climb, however.
On Monday, crude oil prices surged nearly 5 percent as Venezuelan President Hugo Chavez, who had been ousted last week, returned to power. Under Chavez, the country, — the third-largest oil supplier to the United States — has limited production to prop up prices. During the past several weeks, tensions in the Middle East have contributed to rising oil prices as well.
For March, gasoline prices went up 8 percent nationally, the biggest jump since last September, according to the Consumer Price Index results released Tuesday. By comparison, the overall rise in consumer prices last month was 0.3 percent.
The national average price for unleaded gasoline was $1.41 a gallon on Tuesday, up from $1.27 a month ago, according to AAA. Among Washington’s bigger cities, Spokane has the cheapest gas, with a current average of $1.30 a gallon.
Steve Holtgeerts, president of Everett’s Hogland Transfer Co., is all too familiar with the gas price trends. His trucking company had to reinstate a fuel surcharge on deliveries as diesel prices have risen.
"We have had the fuel surcharges in place for about four years, but from the end of last summer to mid-February, we were able to drop the charge to zero," he said.
That ended when diesel prices started going up earlier this year, before unleaded gas prices began climbing. As of this Tuesday, the average price for a gallon of diesel locally stood at $1.46.
Tom O’Day of O’Day Petroleum Co. in Everett said independent wholesalers also have been squeezed.
"There was a price inversion that went on for almost two months where we were paying more than the retail dealers were," said O’Day, who sells unbranded fuel to commercial customers.
Despite the recent price boost, the Seattle-Bellevue-Everett average for unleaded is still about 10 cents lower than at this time last year, according to AAA figures. But as the weather gets warmer and more drivers hit the road, the price is likely to keep going up.
"We still haven’t reached the heart of the summer driving season yet," Ray said, "so we think it’s probable it will continue to go up."
You can call Herald Writer Eric Fetters at 425-339-3453 or send e-mail to fetters@heraldnet.com.
Talk to us
> Give us your news tips.
> Send us a letter to the editor.
> More Herald contact information.
