Gas prices skyrocket, long queues at the gas-station

Gas prices skyrocket

By Lou Sian Daily Journal correspondent

Summer may be over, but gasoline prices continue to climb.

Traditionally, gasoline prices decline in the fall when demand is lower. But instability in oil-producing countries and disruption to delivery systems created by hurricanes in Florida are some factors affecting consumers at the pumps, according to AAA of Northern California.

At Costco Wholesale in South San Francisco Friday, Steven Parnell, 45, a salesman and general supplier for government agencies from Sacramento to Montara said he noticed gas prices were lower outside of San Francisco.
“A week ago, regular unleaded in Oakland was $2.32 a gallon and $2.25 a gallon in San Jose. It was $2.18 in Sacramento,” Parnell said. “I’m more selective now of how often I visit my customers.”

The average price for a gallon of regular unleaded gas in San Francisco on Friday was $2.38, up four cents from Thursday and 28 cents from last month. This time last year, the average price of regular unleaded gas was $1.89, said AAA spokeswoman Jennifer Mack.

Eric Romero, 44, was low on gas and pumped in two gallons for $5 at a station near his home in Pacifica. He said he saved 20 cents a gallon by driving over to Costco Wholesale in South San Francisco. He said it wasn’t out of his way because he gases up while his wife goes shopping.

While long gas lines formed at Costco Wholesale Friday, business was slow to nil approximately a mile away at the Chevron station on the corner of Westborough Avenue and El Camino Real.

“They’ve killed everyone up and down the street,” said manager Ron Leslie, about his major competitor, Costco Wholesale. Across El Camino Real, a fenced-in and vacant Olympic gas station occupied much of the corner.

“People start shopping for cheaper gas and will drive 10 miles to save 2 cents a gallon,” Leslie said. “We’ll survive. We’ll just ride it out.”

There’s a trickle-down effect when gas prices are very high, Leslie said. Because consumers are spending more, credit card companies charge a higher service fee and taxes are higher.

“People are funny,” Leslie said, who has managed the Chevron station for 17 years. “When they raise the price of gas by 70 cents and drop it down by 40 cents, people say gas is so cheap.”

Jeff Moreno, 50, had stopped at a Chevron Station on the corner of North Delaware Street and Peninsula Avenue. He said he had taken his daughter’s black Volvo to pick her up and the tank was empty. Prices at the pump were $2.59 for regular unleaded.

“This place is a rip off,” Moreno said, “But you gotta do what you gotta do. Just pay the price.”

But paying the price is difficult for Don Evans, 41, who parked his car and hasn’t driven it for a month because of gas prices. He now rides a Harley Davidson motorcyle.

“I spend almost $8 for a full tank when I used to spend $5,” Evans said. “People say, you ride a motorcycle? That must get good gas mileage, but $3 is a lot of money when you have food and housing to pay for. Now, I have a car I’m paying $400 in monthly payments and insurance, and I can’t even drive it.”

AAA officials are pessimistic about gas prices decreasing in the coming months.

“With the continued volatility in the crude market, it doesn’t bode well for it,” Mack said.

http://www.smdailyjournal.org/article.cfm?issue=10-11-04&storyID=35554