With world oil prices on the rise, consumers continue to experience record-breaking gas prices.
According to the Automobile Club of Southern California’s Weekend Gas Watch, self-serve regular gas from Los Angeles to Long Beach averaged $2.38 a gallon, 23 cents higher than this time last year.
“In the L.A. area, we reached a new record, where we were about $2.45 a gallon, and now we’re at $2.45 and half a cent,” said Marie Montgomery, spokesperson for the Automobile Club of Southern California.
Due to the rise in successful economies in many nations, countries are in need of gasoline and are willing to pay more for it, which reduces the available supply for each individual nation, Montgomery said.
“There’s more competition for the U.S. to get its resources, and it’s a seasonal thing,” Montgomery said. “Prices go up in the spring, trickle down, and stay lower. Now we don’t know what’s going to happen, because the oil prices are so high now. We are not going to get relief for a while.”
Several reasons contributing to high gas prices in California include higher taxes than in other states, supply challenges that other states lack, and using a different formula of gasoline for air quality purposes, Montgomery said.
Based on a report by the Goldman Sachs investment firm, the possible trading prices of a barrel of oil, three to four years ago, was sold at $30 a barrel, Montgomery said. Today, prices for oil are at about $50 a barrel, and the report warned that we should be anticipating $105 a barrel in the future, Montgomery said.
CSUN students are noticing the rising costs, as well.
“As a person who likes to drive and go out, it’s hard not to worry about people not pitching in for gas,” said Yvette DelRosario, sophomore business major. “In the summer, you’re going to want to party, and there’s always a price to pay. In this case, it’s the gas.”
For Cesia Toledo, junior psychology major, filling up her tank costs a pretty penny, which affects her social life.
“I pay $35 to fill up my car,” Toledo said. “It keeps you from going out.”
Gas prices at various stations vary depending on whether a business accepts credit cards, where they get their oil, and the location of the gas station, Montgomery said.
“ARCO overall is cheaper for a couple of different reasons,” Montgomery said. “They don’t take credit cards, and a credit card charges the business every time the card is used. They are able to eliminate a lot of that cost, and they don’t need to worry about building that into their costs. Another reason is that they get more of their oil from domestic sources like Alaska and Texas, unlike other oil companies.”
If there are several gas stations at one intersection, it keeps prices down, Montgomery said. If you’re in an area that is close to a freeway or not around many gas stations, prices will be higher, she said.
“A lot has to do with where you are,” Montgomery said. “People are learning to figure out where the cheapest gas is. When the prices come back down, (people should) notice where the lower prices are and try to always frequent (them.”
stations. If you patronize the place with the lower prices, it will force other stations to lower their prices.”