It’s nowhere near summer, the time of year known for its high fuel prices — yet the price per gallon of gas keeps ticking up nationwide.
The average gallon of gasoline nationwide, on March 10, ranged from $3.52 for a gallon of regular unleaded gasoline to $3.91 for diesel, according to fuelgaugereport.aaa.com, a AAA operated site. The prices are up approximately 41 cents from one month ago, according to the website. Prices could continue to increase, but have yet to break a record.
“It’s not out of the world that we may hit $4 a gallon this year,” said Jennifer Cook, AAA spokeswoman.
AAA uses credit card transactions at approximately 100,000 self-serve stations nationwide to track gasoline prices. It has followed trends in crude oil and gasoline costs since 1979.
In Washington, average prices were even higher, ranging from $3.62 for regular unleaded to $4.09 per gallon of diesel gas, according to the website. The Seattle/Bellevue/Everett area averages were higher still, ranging from $3.67 to $4.13, according to AAA’s Fuel Gauge Report. In Tacoma, gas prices were roughly 2 cents cheaper per gallon.
Washington drivers are paying some of the highest prices nationwide for gasoline. This is because it cost more to distribute oil here from the Middle East, Cook said. The state also gets some of its gasoline from Alaska, where it’s harder to refine the crude, she said. Additionally, there are not as many refineries in Washington so there is less competition, resulting in higher prices, Cook said.
Drivers take notice
Todd Shaner of Yelm filled up Thursday at Ernie’s Fuel Stop on Pacific Highway South in Federal Way. He’s noticed the rising gas prices and has cut down on his activities in response. Shaner, who drives from Yelm to Seattle for work, purchases diesel. A full tank of gas costs about $90, he said.
“It definitely doesn’t help the pocketbook,” Shaner said. “It’s starting to hit hard.”
Kirk Kaleta of Auburn also filled his tank Thursday at Ernie’s. He too has noticed the jump in fuel costs. Kaleta purchases about $40 worth of unleaded gas per week, he said.
“As long as I’m in the same boat as everyone else, I’m OK,” he said.
On Thursday, Ernie’s had some of the city’s higher gas prices, from $3.75 for unleaded to $4.23 for diesel. Manager Yvonne Dahl said prices are higher because Ernie’s gets fuel deliveries daily. The station caters to truckers, providing ample diesel fuel. Other stations get deliveries every few days, Dahl said.
“They’re sitting on a pressing from two days ago,” she said.
When crude prices go up, Ernie’s prices go up, Dahl said.
“Every day it was 10 cents and 10 cents and 10 cents,” she said.
The station offers a 10-cent-per-gallon discount to those who pay cash.
Political unrest
A few things have contributed to the steep prices currently being seen at the pumps, Cook said. First, prices tend to increase, usually from 5 to 15 cents in late February to March as refineries reduce their capacity in an effort to switch from production of a winter blend to production of a summer blend of gasoline, she said.
Second, the political happenings in Northern Africa and the Middle East — areas that produce some of the crude used in the United States — is causing crude prices to increase, Cook said. The price of crude is about $105 per barrel.
“What happens in that part of the world will affect our prices,” she said.
For instance, political protests in Libya, a north African nation rich in oil, have caused a 50 percent to 75 percent decrease in crude oil production in the country, Cook said. In February, protestors began rebelling against Col. Muammar el-Qaddafi, who has ruled the country since 1969.
The uprising has caused speculation to the crude oil market. Gasoline prices in the United States dipped slightly when a rumor circulated that el-Qaddafi may step down, but they rose again when the rumor proved false, Cook said.
The United States receives about 5 percent of its crude from Libya. European countries receive much more from the African country.
“When they are not getting the oil they need it also puts pressure on our market,” Cook said.
Record setting
It’s hard to say what the crude market may do.
“Because it’s not really based on supply and demand and common denominators that we know, it’s hard to predict (future prices),” Cook said.
The nation set a record on July 17, 2008, when the average price for a gallon of regular unleaded gas reached $4.11. Diesel gasoline was selling for a nationwide average of $4.86. On March 10, 2008, nationwide unleaded fuel averaged $3.50 a gallon, 2 cents cheaper than what is being seen now, Cook said.
“We’re not that far off where we were then,” she said.
Prices began to decrease by Labor Day 2008 and were reduced significantly by October, Cook said.
Save money
Here’s some tips for saving money on gasoline.
• Visit gasbuddy.com to find up-to-date information on gasoline prices at local stations.
• Keep air pressure in the tires at an appropriate level. Cook suggests checking the owner’s manual, not the tire, to know the proper pressure. For each pound a tire is under-inflated, fuel efficiency decreases by 2 percent, she said.
• Keep the vehicle maintained.
• Decrease the vehicle’s load.
• Combine errands to avoid traveling several miles at a time.
