Gas prices reach record high, experts expect decline soon

Most of the time, Amy Thoma drives home to Chico on vacations.
Despite the eight-hour drive north from Los Angeles, Thoma said it
is usually cheaper for her to drive than fly ““ but not this
spring break.

“It would have cost close to $100 to drive; instead I was
able to fly for $80,” said Thoma, a third-year political
science student.

Soaring gas prices in California set the all-time record for the
average price of unleaded gasoline at $2.167 per gallon on March 22
““ and have prompted students like Thoma to reconsider their
transportation options.

Last week, the California Energy Commission reported a small
decrease for the average price of unleaded gasoline in California,
though prices are still much higher than they were a month ago and
greatly exceed the national average.

“The average price in California for regular gasoline
dropped slightly by 2/10 cents from the previous week, but it was
still up 22.1 cents in 4 weeks,” according to the report
released March 25.

The report stated the average gas price in California was
$2.143, while the national average is only $1.69.

High gas prices have been a result of several issues, one of
which has been anticipation of military conflict in the Middle
East, a crucial source of international oil. Relief, however, may
be in sight.

Paul Gonzales, a spokesman for the Automobile Club of Southern
California, said that as many awaited the war, there was a fear
that the supply of crude oil would be interrupted, but since the
war has begun, gas prices have started to decrease.

“After hostilities began, oil prices went from about $39
per barrel to about $10 or $11,” Gonzales said.

He predicts the lower oil prices will lead to lower gas prices,
and Americans should “see gas prices going back down in the
immediate future.”

But in the meantime, Los Angeles, which has typically seen lower
prices than San Francisco and San Diego, continues to hurt.

“We used to say the large number of gas stations in Los
Angeles and Long Beach kept the prices lower than elsewhere in the
state, that is no longer the case,” Gonzales said.

Wildly fluctuating gas prices have prompted some politicians to
search for ways to prevent gasoline companies from market
manipulation and price gouging.

Last week, Sen. Barbara Boxer, D-Calif., introduced a bill that
would limit the power gas companies have in raising pump
prices.

Boxer’s legislation requires the Federal Trade Commission
to investigate the gasoline market for price gouging any time
prices rise more than 20 percent in 3 months.

“I believe the threat of these investigations will have a
dampening effect on prices,” Boxer said in a March 24 press
release.

That dampening effect will benefit L.A. customers, especially
those who are limiting their purchasing of gasoline due to the high
costs.

Seung Chon, owner of a Shell gas station on Federal Avenue and
Santa Monica Boulevard, said the higher prices have pushed sales
volume down.

Chon attributed it to motorists being less willing to drive
because of the high costs of fuel, like Thoma, who said she
“definitely thinks twice” before hopping in her car and
visiting a friend in Orange County.

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