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NEWS > LOCAL


Gas prices to top out again soon?
Jun 8, 2009
 By Colin McConville

Photo by: Nick Lovejoy, Staff Photographer
Photo by: Nick Lovejoy, Staff Photographer
HOLLISTER

A San Benito County resident said that gas prices are "ridiculous" given the current state of the American economy.

"It's just ridiculous with how the economy is," county resident Bea Gorena said Monday at Safeway on Monday. "You have to decide where your money is going - it's hard."

Gas prices have been on the rise lately and are averaging around $2.88 per gallon in Hollister as of Monday. As to what the ceiling will be for gas prices in the future, Gorena said it would be hard to imagine. It's unclear how high those prices might rise with the peak travel season ahead. A spokesman with AAA, meanwhile, contended it won't get close to last year's records surpassing $4 a gallon.

"I can't imagine where it will be at the end of June."

She added that she has no travel plans for the summer but if she did, she said she would go to Texas to visit family."There's no way" that will happen," she said.

The Hollister average has gone up since January, when it was $2.09 and in February, when it was $2.25. The increase over the last five months caught Paicines resident Charles Curry by surprise.

"It is kind of unexpected," he said. "It's not as much as last year, though."

Curry added that he has purchased a hybrid car due to the spike in gas prices last summer and he expects gas prices to go down soon.

Prices at the pump, however, are nowhere near what they were last year at this time. Last year on June 8, the national average for a gallon of unleaded gas was $4.01, the California average was $4.44 and the average price in the Santa Cruz/Watsonville area was $4.43, according to AAA.

The current prices are more than a dollar less per gallon. The national average is $2.62, California is $2.91 and the Santa Cruz/Watsonville area is at $2.88.

AAA Spokesman Matt Skryja said that analysts at the company are expecting the national average price most likely will not get any higher than it is now.

"It won't get much higher," he said. "AAA expects it to peak out in a couple of weeks, barring any unforeseen circumstances."

Although he added that the California average could peak at just over $3 per gallon, it will be "nowhere near the $4 mark last year," again, barring any unforeseen circumstances.

Hollister resident John Maio said people shouldn't "get sick" over gas prices because the cost of everything is going up. While he said his travel plans are not going to be affected by gas prices, he did postulate why gas is cheaper elsewhere.

"Why is the gas in California so much more expensive than in Nevada," said Maio said. "We're obviously being manipulated."

The two largest reasons for the increase in gas prices is due to an increase in travel during the summer months, which raises demand for gas, and gas producers having to switch to a summer blend, which burns more efficiently in warmer temperatures, according to Skryja. Another reason for higher gas prices in the state is due to California having gas taxes that other states do not have in place.


Colin McConville
Colin McConville is a reporter with the Hollister Free Lance. You can reach him by email or at (831) 637-5566.

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