Spokane7
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March 2, 2011 in City
Consumers, businesses face spiking price of gas
Experts foresee peak of $3.50 per gallon this year
Recession-weary consumers probably aren’t too tired to notice the spike in gasoline prices.
In both Spokane and Coeur d’Alene, the average price of unleaded regular gas has jumped about a dime per gallon in the past seven days, according to Gasbuddy .com, a network of websites that track local gas prices.
Overnight from Monday to Tuesday, Spokane County gas prices rose 3 cents per gallon on average, the same website reported.
As they did in 2008, drivers are likely starting to fret. Three years ago the price at the pump skyrocketed above $4 per gallon in many areas. A major factor behind the rise of oil prices is fear of instability in the Middle East, especially as turmoil threatens to disrupt three large producers: Libya, Saudi Arabia and Iran.
Some area drivers say they’re psychologically equipped to ride out the price rise up to $4 per gallon. But a number of oil analysts peg the likely high point this year at $3.50 for a gallon of regular.
The price of motor fuel hasn’t reached that level since Oct. 6, 2008, according to AAA, the nation’s largest motoring organization.
Drivers will pay strict attention, but many, like Chris Harper, will not change their habits much until prices climb near $4.
“People seem to understand why gas prices keep going up,” said Harper, who works at a Conoco station in the Spokane area.
“They stomach the increases, up to a point. Even at $3.50 per gallon, it wouldn’t be that much different for me,” said Harper.
Teresa Ide, a marketing coordinator for the Spokane Regional Convention and Visitors Bureau, said $4 per gallon would set off a number of big changes in her habits. She’d start riding public transportation to and from work, she said. She’s also likely to start carpooling with friends to activities.
Even under $4 per gallon, Ide said she’ll think seriously about how much driving she does. In 2008 she was a student in Pullman while working three nights a week in the summer.
“That weekly cost (for gas) took about half my paycheck that summer,” Ide said.
Consumers may not react much to gas at $3.50, but dozens of area companies that rely on trucks, delivery drivers and transportation costs will feel the pain, said Patrick DeHaan, a petroleum analyst for Gasbuddy.com.
“Consumers will start to see the trickle-down before long. Even now it’s beginning to affect the costs of companies handling freight. And those companies will pass the costs to consumers,” DeHaan said.
Travis Wray, one of the managers of Wray’s Trucking, based in Spokane Valley, is already pulling some of his trucks out of operation.
“It’s already begun hitting us,” Wray said. “We just can’t continue operating the same way without passing the costs on, eventually.”
Wray Trucking operates about 20 trucks, with drivers taking loads to 49 states and Canada.
“A lot of people don’t care about the price of diesel, but they should,” he said. “Almost everything they buy gets carried by a truck.”
Garco awarded $35.8 million Joint Base Lewis-McChord contract 
mikeln on March 02 at 12:36 a.m.
Gas price increases are due to speculators buying up the supply and then overchargeing the consumer. What a rotten way to make money.
johnclarke on March 02 at 6:36 a.m.
Right you are. However, we changed our behavior once and the price came down. The consumer can do it again.
misjustice on March 02 at 6:55 a.m.
Speculators are doing this; just as they are increasing the costs for most commodities. Thanks, Wallsters, Shysters, and Con Men/women!
berrybestfarm on March 02 at 6:57 a.m.
The price that alternative fuels become competitive is $3.75 a gallon. My bet is that the price will exceed that just long enough for the next round of start up companies to become invested then the gas price will come down to put them out of business. At least we are not completely powerless. We can conserve by driving 55 on the highways and combining as many trips as possible. I wonder how much profit the oil companies are going to make this time around and how much they will contribute in taxes.
Dennis Patterson—Deer Park
DickAdams on March 02 at 7:12 a.m.
Well I see the largest casino in the world, Wall Street, is at it again. White collar crooks robbing everybody in site.
JBlim on March 02 at 7:31 a.m.
Oil contains a political risk factor that fluctuates according to perceived supply disruptions. If speculators push the price of oil up beyond what is economically justified, they will lose money when reality catches up with them. Speculators are just another convenient scapegoat for underlying problems.
misjustice on March 02 at 7:36 a.m.
I do what I can to conserve gasoline/oil products; but with a new job requiring a 70 mile daily (6 days per week), roundtrip, commute I have fewer options. If prices continue to soar, I may be forced to move closer to work; a move that has its own associated costs.
No matter where you go, there you are!
; )
johnclarke on March 02 at 7:40 a.m.
My company has a great work from home program. I encourage you all to explore this - if it’s possible for your type of work.
west on March 02 at 7:45 a.m.
Hey Sowa,”peak of $3.50 later this year”, Its already up there across the US as of today!
D Statler on March 02 at 7:51 a.m.
This sounds like a great excuse for AVISTA to request another rate increase!
D Statler on March 02 at 7:54 a.m.
De-Regulation is the root cause of this manipulation of greed.
Patanjali on March 02 at 8:34 a.m.
The gas price in England is the equivalent of $8.00 a gallon. All of Europe is higher than the US. We have been spoiled for a long time by cheap energy. Yet the government continues to give tax breaks to the oil companies. Perhaps the tax breaks should be given instead to anyone who rides a bus to work.
lewis8457 on March 02 at 8:59 a.m.
since regular gas has so much water in it i have to use mid grade so i am looking at $4 plus per gallon this summer.
Orange on March 02 at 9:10 a.m.
John, we have a work from home program too. Works good for those that can use it. Cenex must have bought a boat load when prices were still somewhat fair. only 3.11/g here. Others are at 3.25/g or higher.
hawken on March 02 at 9:42 a.m.
Jblim is correct:
monkeyman on March 02 at 10:15 a.m.
Carpooling interest would increase. Another silverlining could be better revenue for STA (buses).
monkeyman on March 02 at 10:20 a.m.
MsJ, you could look for a carpool. Unless you don’t like company, just like I don’t. But I have never carpooled, who knows I might like it.
Is there a convenient way to look for people who’s commute matches yours…?
greenlibertarian on March 02 at 11:46 a.m.
So much bogus info.
especially as turmoil threatens to disrupt three large producers: Libya, Saudi Arabia and Iran.
-Tom Sowa
Depending on whose numbers you believe, Libya supplies 2.5%-4.0% of total world oil exports. That is NOT a large producer in the export market.
The clever, brutal, shrewd, and VASTLY rich Saudi Royals are not going to be overthrown in the foreseeable future, and have already acted to appease the populace. Saudi Royals are THE MOST entrenched ruling authority in the world.
http://www.istockanalyst.com/finance/story/4935896/saudi-arabia-s-buttock-clenching-week
SA has already increased production to make up for the short term loss of Libyan exports.
Finally, if you’re not talking about the INFLATION ADJUSTED price of gasoline, you’re merely talking out of your arse.
http://inflationdata.com/Inflation/Inflation_Rate/Gasoline_Inflation.asp
It is certainly true that oil and gas prices are above the long term inflation adjusted price , in the case of gas, by about 75 cents a gallon. Three factors are primarily involved, instability in the middle east, rising world demand as the economy recovers, and some speculation.
hawken on March 02 at 12:04 p.m.
greenliberal:
What’s your point?
You look like a dog chasing his tail with your last post.
Teseract on March 02 at 12:20 p.m.
I knew there was a reason I bought a little 1.5L 4 cylinder 5 speed car back in November.
The co-worker I bought it from cheap is wincing a bit now. ;)
MrNatural on March 02 at 1:33 p.m.
Looking at the revelations of Peak Oil…and the facts surrounding the finite nature of fossil fuels…oil is an inevitable dead end not to mention the pollution it releases…we need to find a better way to provide for our energy demands including altering our lifestyles…I think future generations will rely on us to find the way before it’s too late…and I think this will affect them more than any deficit
Grog on March 02 at 4:19 p.m.
Mr Natural has the right idea. Oil will run out someday, as it is not a renewable resource. We need to invest in something sustainable. We need cars than run off saltwater or photosynthesis.
Our current lifestyle will have to change at some point, but for now, oil is just too profitable for the large corporations to give up and look into alternatives .
Orphan on March 02 at 6:06 p.m.
I just purchased a Ford F-350 diesel pick up and a 26 foot travel trailer today. No worries it will all work out in the end.
greenlibertarian on March 02 at 6:46 p.m.
Orphan on March 02 at 6:06 p.m.
I just purchased a Ford F-350 diesel pick up and a 26 foot travel trailer today. No worries it will all work out in the end.
All ya need now (for around town use, and the first tank out on the road) is a bio diesel converter and some contacts with a few restraraunts.
toms on March 02 at 10:01 p.m.
Current US average for regular (march 2) is $3.41 per gallon. Whatever… it’s going up some more
greenlibertarian on March 02 at 10:56 p.m.
Yeah, and your point is…? Are you unable to process the historical (constant dollars) price o f gasoline? which is about $2.79 a gallon? Three and a half bones is high, definitely, but ain’t that far from the mean, in terms of the historic swings in the price of gasoline.
“Whatever” Really, you think that’s a good term/exclamation for a journalist to make?
JBlim on March 03 at 6:02 a.m.
My kids say “whatever” when they realize they’re wrong.