Gas prices are expected to rise

Associated Press

Just what motorists didn’t want to hear on the eve of summer vacations: Gasoline price shock is back.

With U.S. gas prices at record highs and motorists paying $2 a gallon in Chicago and California, talk from the pump to the Oval Office on Monday focused on whether prices could reach a once-unthinkable $3 a gallon this summer.

The talk came on a day when the Federal Trade Commission announced that after a three-year investigation, it found no evidence that major oil refiners violated antitrust laws in marketing West Coast gasoline.

The FTC investigation, which include wholesale prices in Washington state, began three years ago at a time when gasoline leaped from $1.07 a gallon to $1.25 in Snohomish County in a matter of days. Prices through the West spiked rapidly after a refinery suffered a mechanical failure, another caught fire and a third suffered an explosion.

They’ve remained high ever since.

There is no "magic wand that (a politician) can wave over gas prices to lower them," said White House press secretary Ari Fleischer.

The odds appear to be against another huge runup.

But the White House alluded to the possibility, saying President Bush will not act to stop any increase even if prices top that amount.

Fleischer said Bush opposes price controls and has not supported calls to repeal or cut the 18.4 cents-a-gallon federal gas tax.

"The worst may already be over, because refiners are getting caught up" with supplies, said Phil Flynn, senior energy analyst for Alaron Trading Corp. in Chicago. "The bad news for consumers is we don’t have one extra drop of gas to fall back on.

"If one more refinery goes out of service, it could have an impact on consumers of as much as 75 cents a gallon."

Drivers in other parts of the nation are being confronted by gas prices soaring to $2 and higher, bringing back unpleasant memories of last year’s price increases.

Motorist Mark Lasser shook his head unhappily at the prices — $2.13 a gallon for unleaded and $2.25 for premium — as he stood filling his sport-utility vehicle at a San Francisco gas station.

"This is depressing," he said as the nozzle shut off at $41.83. "I already pay $250 to $300 a month."

Chicago taxi driver Ikemefun Onwuke said the latest price hikes may force him look for a different job. "It’s not worth it, driving a cab," he said.

U.S. gas prices reached an all-time high in the past two weeks, not adjusting for inflation, according to the Lundberg Survey of 8,000 service stations. Overall, the average price covering all grades of gasoline increased 8.58 cents to $1.76 a gallon as of May 4.

Factoring in inflation, that is a full dollar less than the average cost of gasoline in March 1981. It is also significantly less than motorists pay in much of the rest of the world.

That is small consolation to many, especially in the Midwest, which saw the highest price increase — 13 cents — and the West, where prices rose 8 percent since April 20. Those two regions fared worst in part because of the reformulated gasoline they rely on to limit pollution.

In Chicago, which has the nation’s highest average price at $2.02 for a gallon of self-service regular, a fill-up that used to cost Erika Trujillo $20 for her Nissan Stanza now runs about $30.

"This is crazy. $2.34 for a gallon of gas?" the 19-year-old cashier said at a pump in downtown Chicago. "We can’t even afford to pump gas anymore. We’re going to have to get on our bicycles."

Unlike last year, the crude oil supplies that are the source of U.S. gasoline are abundant. But the market remains jittery after fires at refineries in Los Angeles and Wood River, Ill., sent gasoline futures to a 17-year high last week on the New York Mercantile Exchange.

Copyright ©2001 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Talk to us

More in Local News

The county canvassing board certifies election results at the Snohomish County Auditor’s Office in Everett, Washington on Tuesday, Nov. 28, 2023.  (Annie Barker / The Herald)
General election results stamped official by canvassing board

In Snohomish County, one hand recount will take place. Officials said ballot challenges were down this year.

The Days Inn on Everett Mall Way, which Snohomish County is set to purchase and convert into emergency housing, is seen Monday, Aug. 8, 2022, in Everett, Washington. (Ryan Berry / The Herald)
Over $130M for affordable housing set to be approved by County Council

The five-year investment plan of the 0.1% sales tax aims to construct 550 new affordable units.

Two snowboarders head up the mountain in a lift chair on the opening day of ski season at Stevens Pass Ski Area on Friday, Dec. 2, 2022, near Skykomish, Washington. (Ryan Berry / The Herald)
Ski season delayed at Stevens Pass due to minimal snow

Resort originally planned to open Dec. 1. But staff are hopeful this week’s snow will allow guests to hit the slopes soon.

Siblings Qingyun, left, and Ruoyun Li, 12 and 13, respectively, are together on campus at Everett Community College on Thursday, Oct. 19, 2023, in Everett, Washington. The two are taking a full course load at the community college this semester. (Ryan Berry / The Herald)
Siblings, age 12 and 13, are youngest students at EvCC campus

Qingyun Li was 11 when he scored a perfect 36 on the ACT test. His sister, Ruoyun, was one point away.

Edmond’s newly elected mayor Mike Rosen on Wednesday, Nov. 15, 2023 in Edmonds, Washington. (Olivia Vanni / The Herald)
Mayor-elect Rosen wants to ‘make Edmonds politics boring again’

Mike Rosen handily defeated incumbent Mayor Mike Nelson. He talked with The Herald about how he wants to gather the “full input” of residents.

A speed camera facing west along 220th Street Southwest on Tuesday, Nov. 21, 2023 in Edmonds, Washington. (Olivia Vanni / The Herald)
Traffic cameras, and tickets, come to Edmonds; Mukilteo could be next

New school zone cameras in Edmonds will begin operating in January. Mukilteo is considering enforcement cameras as well.

A person walks their dog along a flooded Old Snohomish Monroe Road on Tuesday, Nov. 16, 2021 in Snohomish, Washington. (Olivia Vanni / The Herald)
Flood-resistant floors and sandbags are price of riverside life in Sultan

Flooding is a threat every year for 75,000 locals — and the long-term forecast suggests it’ll only get worse in the coming decades.

Lynnwood
3 men charged in armed home invasion near Everett

Prosecutors allege the trio targeted other Asian American homes across Snohomish, Whatcom and King counties.

Team members prep for the upcoming ski season at Stevens Pass Resort in Skykomish, Washington on Wednesday, Nov. 29, 2023.  (Annie Barker / The Herald)
Any day now: All eyes on snow forecast at Stevens Pass

The ski area was a flurry of activity this week, as staff made sure a new lift and app were running smoothly.

Everett
Carjacking suspects tracked via GPS from Everett to Renton, then arrested

A King County resident reported two people stole their Mercedes at gunpoint. Hours later, its GPS tracker pinged in north Everett.

Edmonds
Man sentenced for racist threats to Edmonds animal control officer

Sean Wagner spewed slurs at an officer who seized his dogs. He was sentenced to jail for a hate crime.

A sign in front of the AquaSox front office references the upcoming Everett City Council vote on a sum of $1.1 million to give to outside contractors to help upgrade a new stadium on Wednesday, Nov. 29, 2023 in Everett, Washington. (Olivia Vanni / The Herald)
Everett AquaSox stadium upgrade gets $1.1M green light from city

City officials want to keep the team in Everett. But will they play in a new stadium downtown in 2027? Or an updated Funko Field?

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.