Gas Prices Rode The Accelerator Last Week
Monday, February 4, 2013
SAN DIEGO San Diego gas prices surged up more than 25 cents a gallon in just the past week. The average price hit $4 a gallon for the first time this year.
Aired 2/5/13 on KPBS News.
San Diego gas prices surged up more than 25 cents a gallon in just the past week.
Wholesale gas prices surged more than 40 cents a gallon in the past two weeks. Retail prices at the pump are up about 30 cents a gallon in that span, hinting that the price spike is not over.
It is typical for prices to go up as spring approaches, but the surge is early this year.
"This is the time when refineries in California, and really along the West Coast, reduce their production so they can do maintenance," said Jeffery Spring of the Southern California Automobile Club. "And that's always expected. It always happens. But it seems this year there's a little more heavy duty maintenance than usual, and so, production levels are a little lower than usual. Or even lower than expected."
Oil prices are up and investors are pushing prices up in the futures market. Ironically, consumption is falling in California as more people are buying fuel efficient cars, according to Spring.