LV gas prices reach record levels

Dan Kulin

Tuesday, March 2, 2004 | 11:10 a.m.

After weeks of rising toward and then past $2 a gallon, Nevada's average price of regular unleaded gasoline reached $2.03 Monday, tying the record set just under a year ago, the AAA said.

Nevada's average price was the third-highest in the country and 34 cents above the national average on Monday, and experts disagreed on when prices might fall again locally.

Las Vegas, according to the AAA survey, reached an average price of $2.06 a gallon for regular unleaded and in Reno it was $2.01.

The survey is an average of gasoline pump prices throughout the state, so local prices often go much higher. This morning several valley gas stations checked by the Sun showed unleaded prices at $2.07 or $2.09 a gallon, with some as much as $2.13.

Peter Krueger, state executive of the Nevada Petroleum Marketers, said that while the price at the pump is high, the wholesale price, which is what the gas stations pay, dropped "a few pennies" on Monday. If that downward trend continues, drivers could see lower prices in a week or so, he said.

"Hopefully we've turned a corner now," said Krueger, whose organization represents 32 fuel wholesalers and retailers.

AAA Nevada spokesman Sean Comey didn't share Krueger's optimism.

"All the market forces seem to be pushing prices upward. We see no relief in sight," Comey said.

In a prepared statement the AAA said the cost of crude oil and reduced refinery production are two main reasons for the recent price increase.

Between late January and mid-March refineries temporarily shut down as they switch from producing winter-grade gasoline to the gasoline used in the spring and fall, which, among other differences, turns to vapor at a higher temperature, Krueger said.

Average prices in California, at $2.16 gallon, and Hawaii, at $2.09 a gallon, were higher than Nevada's. The nationwide average was $1.69.

Sen. Harry Reid, D-Nev., who asked the Federal Trade Commission last week to investigate the sharp price increases, is hoping for an agency response this week, spokeswoman Tessa Hafen said Monday.

The price increases have been attributed in part to the unexpected shutdowns of two California oil refineries, in addition to the scheduled shutdowns. Nevada gets all of its gasoline from California.

"Sen. Reid is hoping both of the California refineries will be back on line," Hafen said. "He actually received assurances of that."

Comey said that while there have been many investigations into price hikes in recent years, none of those investigations uncovered any wrongdoing.

"We all want someone to blame, but unfortunately there's no one principal suspect. ... There are so many organizations and companies involved and everyone's making a profit," Comey said.

Still many area drivers are seeing the effect on their wallets.

"It's costing more to get around," Erin Smith, 28, of Las Vegas, said. "You can try to catch rides with friends and try to get everything in one shopping center, but there's not much else you can do.

"It's a joke now with my friends. We're always like, 'You're driving' and poking fun at who has to drive next when we're going out. No one ever wants to be the one who has to drive now."

James Stauffer, 40, of Las Vegas, said his driving habits have changed.

"My wife and I try to go together on weekends to get everything done at once with few stops," Stauffer said. "We've always done that but especially need to do it now."

Carl White, 37, of Las Vegas, said he hasn't changed his driving habits yet, but might if prices continue to increase.

"It's a bummer, but what can you do? Nothing," he said about rising prices.

Nevada's record high of $2.03 was first set on March 18, 2003.

Sun reporters

Steve Kanigher and Heather Rawlyk contributed to this report.