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Gas tops $3 mark again in Calif.; will rest of U.S. follow?

JORDAN ROBERTSONAP Business WriterGlenwood Springs, CO Colorado

SAN FRANCISCO (AP) Motorists are seeing a gasoline price spike months ahead of the busy summer driving season, with the price for a gallon of unleaded regular already over $3 a gallon in some parts of California and Hawaii and on its way everywhere else.It kills me, said Gloria Nunez, 53, as she filled her Ford Explorer SUV at a San Jose gas station. Nunez, a clerk for a communications company, has started working a couple hours of overtime each week to help soften the blow.All of a sudden you kind of have to watch your pennies, she said.Analysts say drivers should brace for more increases in the coming weeks as higher demand coupled with refinery maintenance issues and normal seasonal fears about a spring shortage continue to drive up prices. The West Coast will take the hardest hit, they say.The West Coast will certainly be the wild, wild west this year, said Tom Kloza, chief oil analyst for the Oil Price Information Service. Extensive maintenance work at West Coast refineries has curtailed supplies and exacerbated the typical preseason rally spurred by jitters about a shortage.In the rest of the country its just petro-noia; theyre worried that they wont have enough gasoline, Kloza said. But on the West Coast the concern might be warranted.Fuel prices are still below their historical highs most of which were set in 2006 but are inching higher weeks earlier than usual.Wailuku, on the Hawaiian island of Maui, currently has the highest price for a gallon of regular unleaded at about $3.20.On the mainland, the title goes to San Francisco, where a gallon is going for $3.10, a jump of about 34 cents from a month ago but still off the high of $3.36 set in May 2006, according to the AAA Daily Fuel Gauge Report for Wednesday.The California cities of Santa Barbara, San Luis Obispo and Oakland are also all above $3 a gallon. Most other areas of the state are just a few cents away from cracking that milestone, and motorists say theyre cutting back to save money.I take the bus, said Hector Esqueda, an 18-year-old justice administration student from Los Angeles who has stopped driving his gas-guzzling, older-model Lincoln Continental to save money. Other people are doing the same thing. The bus is packed.Nationwide, the price for a gallon of regular unleaded is up about 32 cents from a month ago, to $2.50, according to the AAA report. Thats more than 55 cents shy of the all-time high recorded in September 2005, after hurricanes Katrina and Rita damaged the Gulf of Mexico refinery infrastructure.Part of the reason is rising demand. The U.S. Energy Information Administration said Wednesday that gasoline demand has averaged more than 9.1 million barrels per day over the past month, a 3.3 percent jump over the same period last year.Oil prices jumped by more than $1 per barrel after the agency also reported an unexpected drop in crude oil inventories as import levels reached their lowest point since 2005.Across the country, drivers are grappling with how to manage the sudden spike.Outside a Sunoco convenience store in downtown Philadelphia, T.J. Hawk, a 45-year-old retired Philadelphia police officer, recalled the good old days when it cost $5 to fill the tank.These days, it takes at least $40 to fill his white Volvo. Most weeks, he only fills it three-quarters of the way to soften the hit to his wallet.In Philadelphia, regular unleaded averaged about $2.57 a gallon early Wednesday morning, a 12 percent jump from a month ago but still well shy of the high of $3.358 a gallon set in September 2005.Hawk attributed the price hike more to politics than of supply-and-demand forces.Election is over, said Hawk. For the Republicans, George W. Bush cant be re-elected anymore so they can make all the money they want.Several customers at a Mobil station in St. Petersburg, Fla., were upset because there seemed to be no real reason for the price increase. Prices at the station range from $2.47 a gallon for regular to $2.69 for premium.Lee Franc, a client manager from St. Petersburg, spent about $40 to put 16 gallons in her Toyota Highlander. She works at home and can go a week or two without filling up.Katrina, I can understand, Franc said. I didnt see a very good explanation this time. You hear so many excuses it gets to where you dont believe anything anymore.In Chicago, cab driver Nathan Michaels pays $25 each day to gas up his cab. That cost plus the $325 per week he pays to lease his cab makes it difficult to earn a living, even though he works six days a week.Hes been considering buying an SUV for personal use, but thinks with gas prices rising hell start researching hybrid vehicles.The rising gas prices also raise his anxiety in a more general way, he said. It contributes to an overall feeling of uncertainty about whats going on worldwide.Associated Press writers Deborah Yao in Philadelphia, Phil Davis in St. Petersburg, Carla K. Johnson in Chicago, and Jacob Adelman in Los Angeles contributed to this story.


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