Thursday, June 19, 2003 | 11:08 a.m.
Although the average statewide price of a gallon of regular unleaded gasoline in Nevada dropped by 4 cents this month from last month, AAA of Nevada says prices have begun to rise in some cities and could push up across the state.
The average price of a gallon of gas statewide was $1.74 in the AAA survey released Wednesday. Las Vegas experienced a drop of 8 cents a gallon, to $1.73.
But three cities surveyed had increases in gas prices. In Carson City regular unleaded went up 9 cents to $1.74; in Sparks it went up 7 cents to $1.77; and in Reno it went up a penny to $1.75.
AAA of Nevada saw that as a harbinger for prices elsewhere in the state.
"While prices continue to remain lower than they were a month ago, there are indications prices are on the rise again," spokeswoman Lisa Foster said in a statement.
"They increase gas prices too much," said Jose Martinez, a tourist who drove to Las Vegas from Los Angeles. Martinez said, however, that rising prices wouldn't affect his plans until they reach $2 a gallon.
"You gotta do what you gotta do," said Kurt Niedermeir, who flew from Minnesota to Los Angeles with his girlfriend before the pair drove here. Niedermeir, who was filling up at the Terrible Herbst Chevron gas station near Las Vegas Boulevard and Sunset Road, agreed that $2 a gallon is his limit, even though gas is 40 to 50 cents a gallon cheaper in his home state.
"I'm glad I don't live here," he said.
Travel experts say those attitudes are common among drivers planning trips.
"What were seeing there's a real pent-up demand for travel," AAA of Northern California spokeswoman Jennifer Mack said. "All the numbers indicate that the desire for travel is not overly affected by the price of gas. Traveling by car, even when gas is expensive, is still cheaper than other modes of transportation."
The state averages were well above the national average of $1.51 a gallon, but still below neighboring California, where unleaded was at $1.82 during the monthly survey. Los Angeles drivers were paying $1.78, 11 cents less than last month.
"The primary reason is that some refineries are having production problems. There's a tight balance between supply and demand," Mack said.
In the long term, the price of crude oil is rising, Mack said.
"The crude oil market is like stock market. It reacts to foreasting and news of the day," she said.
According to Mack, there is also the concern that the return to normalcy in Iraq is moving slowly, which affects the price of crude oil.
Tourism experts and some drivers said a small increase won't change plans.
Erika Brandvik, spokeswoman for the Las Vegas Convention and Visitors Authority, says the authority wouldn't expect rising gas prices to affect the driving market this summer, even if an extra $15 or $20 were added to the gas bill for a trip.
"That's not likely to be a deterrence for people to come to Vegas," she said.
Local gas station managers around the city also say an increase in gas prices has not hurt their businesses. Instead, people are willing to pay whatever it costs because they have to.
"They're willing to pay $1.74 here as opposed to going to Barstow to pay $2," said Steven Foster, who has been a manager at 711 Citgo Station on the corner of Rainbow Boulevard and Tropicana Avenue for three and half years. California drivers often fill up there before heading back home, he said.
"You have to buy gas. They're going to pay regardless," Foster said.
Foster said he changes the signs of gas prices at least once a week. This morning the cost of regular unleaded gas was $1.74 while across the street the Chevron station was at $1.71, but Foster says that 3-cent difference has not affected business. In fact, sales are at least $800 a day, he said.
At the Texaco station on Windmill Lane and Las Vegas Boulevard, manager Innocent Stanley says he hears many California residents say Las Vegas is cheaper than California. At his station gas was $1.71 for regular unleaded this morning, a luxury to some California residents traveling back to pricey Barstow or Los Angeles, he said. Stanley said gas prices have not affected the influx of local customers coming in to this station.
"Gas is like food, you can't live without it," Stanley said.
It may business as usual as these stations, but the Western Petroleum Marketers Association is still concerned that the supply of gasoline is lower than the demand.
"We're concerned anytime the price of gasoline is going up," state executive Peter Kruger said. "We don't like the price to go up either."
He blamed problems at California refineries for the rising prices.
Kruger also said that his members are concerned that the high cost of gas will change how consumers shop for gas.
"Instead of going to a convenient gas station on the corner, they might drive an extra 10 miles for a price that's less," he said.
At Wheeler's RV in Las Vegas, owner Marlene Wheeler said gas prices have become secondary in business. RV sales have experienced a huge increase since the terrorist attacks of Sept. 11, 2001, she said, and she does not see that number decreasing any time soon.
"Since 9/11 people are becoming more and more interested in travel and spending time with family," Wheeler said. "Gas has not been an issue."
That doesn't keep drivers from looking for a good deal.
Doug Johnson, a truck driver from Utah, says when he travels for fun, he stops before the Nevada state line to fill up his tank because gas in Utah is much cheaper, at an average of $1.51 a gallon for regular unleaded.
"I always look for better prices," he said.
AAA has a few tips to follow that example of paying less for gas.
"Shop around where you work and live to find the best price. Keep your car in peak operating condition and well maintained," Foster said.
Also, be careful how you drive, she said. "Don't accelerate too quickly at a stop. It should have an impact on the mileage."
For drivers going on road trips, realize that smaller towns often charge more than cities for gasoline because there is more competition in cities.
Plan out you gas stops before you head out to the road, Foster advised. It will save you time and money in the long run.
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