Price of gasoline could reach record high

David Kihara

Thursday, Feb. 17, 2005 | 10:58 a.m.

Despite several months of low prices at the gas pumps, the cost of gas is again on the rise and may reach record highs this year, AAA said on Wednesday.

The average price for a gallon of unleaded gas in Las Vegas is now $2.03 and statewide it is $2.07, which is almost 20 cents higher than it was the same time last month, said Sean Comey, spokesman for AAA Nevada. He added that he doesn't expect the prices to decrease in the near future.

"I wouldn't be at all surprised if we see record prices this year," Comey said.

He added, however, that it is extremely difficult to predict how much the price of gasoline will increase because of the variety of factors that contribute to pricing, such as major refinery problems or issues with pipelines.

Nevada has the third-highest average gasoline price per gallon in the nation, AAA stated, with the national average hovering around $1.89 per gallon. Hawaii, where a gallon of unleaded can reach $2.68, and California, with a recorded high of $2.13 a gallon in Los Angeles, led the nation.

Nevada, which relies almost exclusively on gasoline from California, is experiencing higher gas prices because refineries in California are switching over from the winter blend of gasoline to a mix more suited to warmer weather, he said.

"Gas prices typically rise this time of year, which is not to say that people will be happy about it," Comey said. "It was nice to see it go down to fairly significant levels during the winter, but that is no longer the case."

During this time last year, Nevada saw rising gas prices due to the annual changing of the blends at California refineries. From Jan. 4, 2004 to Feb. 17, 2004, the price of gasoline increased 15 cents, from $1.68 to $1.83.

The high cost of crude oil is also a factor in the increasing gas prices, with a barrel averaging between $45 and $50 dollars, AAA stated.

Reno residents are currently spending the most on gasoline in the state, paying an average of $2.09 per gallon, according to AAA. Residents of Elko, however, are spending on average $1.76 per gallon and are paying the lowest prices at the pump in the state.

"The gas prices are very high and it doesn't make any sense," said Carl Albert, a Las Vegas resident, who spoke at a Texaco gas station on Las Vegas Boulevard South and Four Seasons Drive. "It makes a person want to start driving a motorcycle or pick up riding a 10-speed bike."

Albert spent $36 for 15 gallons of gasoline to fill up a Jeep. The Texaco station sold a gallon of regular unleaded for $2.17 a gallon or a higher grade for $2.25.

Peter Krueger, the director of the Nevada Petroleum Marketers and Convenience Store Association, said his members are reporting that the price of gasoline is higher in Nevada because refineries are required under federal law to begin reducing the sulfur content in their gasoline and are therefore spending "millions and millions" to make gasoline more ecologically friendly.

Because of this, the refineries are attempting to make up their loses by charging more per gallon for gasoline, Krueger said.

He said, though, that the annual switching from winter to warmer-weather blends of gasoline could also be a contributing factor in the cost increase.

Anita Mangels, an official with the Western States Petroleum Association in Los Angeles who deals with pricing, declined to comment on whether refineries are charging for gasoline because they are producing more environmentally friendly gasoline.

"The refineries are always making investments in cleaner burning fuels," she said.

The Western States Petroleum Association is a lobby organization for the petroleum industry,including refineries and distributors.

She said gasoline prices in Nevada are so high because the supply of gasoline is lagging behind the need in Nevada and the high crude oil prices.

One Las Vegas resident, Charles Carter, said that Las Vegas residents should express more anger over the rising gas prices. Speaking outside a Terrible's gas station on Tropicana Avenue and Maryland Parkway, Carter said local residents need to protest the prices.

"I think somebody is sticking up somebody without a gun," Carter said. "I think it stinks."

For visitors to Las Vegas, the price of gasoline at the pumps came a shock.

"I've never seen gasoline cost more than $2 per gallon. This is the highest I've ever seen," said Dick Davis, from Wilmington, N.C.

Davis and his wife, Faye, were visiting Las Vegas for one week and chose to rent a car during their trip.

Speaking outside the Texaco station on Las Vegas Boulevard, Davis said the average price of a gallon of gas in Wilmington was $1.84, and both he and his wife were surprised that Las Vegas gas prices reached upwards of $2.17 at some gas stations.

"I didn't know if it was typical of Las Vegas," Faye Davis said, adding, "We've been doing a lot of walking."