Many factors pump up LV gasoline prices

Ed Koch and Heather Rawlyk

Monday, Feb. 23, 2004 | 11:09 a.m.

Las Vegas gasoline prices are among the highest in the nation -- about 20 cents higher than a month ago for regular unleaded -- and rising, according to the American Automobile Association.

At most stations across the valley, the price for unleaded gasoline over the last 24 hours was hovering at or over $2 a gallon with prices for premium hitting as much as $2.27 a gallon. And many fear the price could continue to climb.

Nevada has the third highest average gas price in the nation, according to a survey of states done by AAA.

"Yes, I've noticed the gas prices soaring," Las Vegan Greg Harms said as he and his wife, Sam, filled up their 2000 Jeep Cherokee at the Exxon at Rainbow Boulevard and Vegas Drive, where on Sunday gasoline was selling for $2.07 for regular unleaded, $2.17 for midgrade and $2.27 for premium.

"I just filled up the Jeep a couple days ago. The Jeep guzzles gas anyway, so it's really costing a lot," Harms said. "Every time I turn around I'm putting more money into my gas tank but what can you do? You need gas, you need gas. But yes, it's getting pretty high priced."

The lowest prices found this morning were around $1.90 a gallon for regular unleaded, but most prices for unleaded were pushing $2 a gallon.

Tom Chuck, store manager for City Stop III located at the 1600 block of West Sunset, exclaimed "Oh, lord, God help us," when asked about current gas prices.

Unleaded gas was $1.97 a gallon and premium gas was $2.19 a gallon at his station.

"My customers haven't really complained about the price increases itself, they are just complaining that it's gone up," Chuck said. "Six to eight months ago they all wanted to shoot the messenger, but now they know there's not a lot anyone can do about it. They all just want to know when it's going down."

Terrie Hernandez manager of the Shell gas station at 530 E. Craig Road in North Las Vegas said she's marking up prices a few cents and she and the customers are getting "messed over."

Prices at her station are $2.03 for unleaded and $2.23 for premium.

"I think the government needs to look into this -- these prices are too high," she said.

At Cheyenne Losee Market & Gas in North Las Vegas, prices are $1.94, $1.98 and $2.08.

"Everybody complains about it going so high but there's nothing we can do about it," manager Donna Wilde said.

Today's average price locally for regular unleaded -- the industry standard for determining the market trend -- was $1.90 compared with $1.70 last month, the AAA survey said. The national average for unleaded regular was $1.66 per gallon.

The highest state average is $2.08 a gallon in Hawaii, according to AAA.

Nevada, which had a statewide average of $1.88 a gallon, trailed only Hawaii and California, at $1.97, for national regular unleaded prices.

All grades of fuel in Las Vegas are much higher than they were this time last month. Midgrade is selling on average locally for $2 a gallon compared with $1.79 a month ago. Premium grade is selling for $2.07 compared with $1.86 a month ago. Diesel is selling for $1.89 compared to $1.74 a month ago, the AAA survey said.

Nevada AAA spokesman Sean Comey cited maintenance on California refineries for a reduced supply that is pushing up prices.

"But what is concerning is that the prices now are higher than they were at this time last year, when there was the uncertainty of war," Comey said. "That factor does not bode well for prices, which could again rise again. We are one refinery problem away from pushing the envelope."

The prices for all grades in Las Vegas are significantly above last year's prices for this time last year: 14 cents each for regular and midgrade, 15 cents more for premium and eight cents higher for diesel.

Nationwide, prices for fuel are up just pennies over last month and are similar to last year at this time.

Comey says just about every other factor that works against the consumer at the pumps is in play in Las Vegas.

He said crude oil prices are up to more than $36 a barrel -- $28 or less is considered a good price -- and, because of the cold winter in the East, more crude oil is going toward the production of home heating oil.

Also, Comey said, the Bush administration's decision to purchase a larger supply of oil for the Strategic Petroleum Reserve can translate into higher prices at the pumps because it further reduces supply to meet demand.

On top of that the dollar is weak on the international market, making it difficult to purchase supplies from foreign sources, Comey said.

"The travel forecast for this spring and summer is projected to be robust, which is good for a tourist economy such as Las Vegas," he said. "But given the factors that exist that could translate into even higher prices at the pumps."

At the pumps locally, consumers say they feel the pinch.

At the Shell at Vegas Drive and Jones Boulevard, where gasoline was selling Sunday for $2.05 for regular unleaded, $2.15 for midgrade and $2.25 for premium, Las Vegan Shane Dedman, 26, was filling his Volkswagen Jetta.

"I don't really look at the price usually, but I did notice that $10 didn't get me as far as it usually does," he said. "I just go with the regular and wow, it's priced at what I'd consider premium rates.

"I drive a lot and it's tough having to pay this much and keep filling up -- especially in this rain it's inconvenient. I'm getting soaked and paying over $2 a gallon just for regular. It's a pretty miserable."

Las Vegan Alex Labrum, filling his Chevy Blazer at the same station, echoed that sentiment.

"The Blazer takes a lot of gas," he said. "I put in the medium grade normally, but when it's like this I'm just going with the regular. It's getting expensive. It was just like one day normal and the next it was really high."

Mani Sharif, driving a U-Haul for his move from Reno to Phoenix, stopped at the Exxon on Tropicana Boulevard near the Strip, where gas was selling for $2.07 for regular unleaded, $2.17 for midgrade and $2.27 for premium.

"I picked the wrong time to move," he said. "It's raining and the gas is high. The U-Haul didn't cost too much itself but filling it is expensive. I didn't really estimate this much in gas into the budget."

Jenny Farmer, 22, of Huntington Beach, Calif, said she would roll with the punches.

"My friends and I drive out here a lot for weekends and it cost more to get out here this weekend then the last couple (times)," she said. "It's not that bad, but if you drive a lot it can get up there.

"It cost more but it's worth it. Once you're on the Strip you don't have to drive too far to get where you want to. We have four girlfriends pooling in, so it hasn't been too bad."

Sun reporters Christina Littlefield and Timothy Pratt contributed to this story.