Carol Thorp Quotations

Prices went up throughout Southern California this past week, but not at as rapid a pace as we've seen during other gas price spikes. It's likely that increases will continue for at least the next few weeks.

Prices rose 4 cents today (in San Diego), and that is not unusual lately. There is profit-taking; no one can avoid that conclusion.

Prices remain on the rise but there is hope that we may be nearing a peak. Wholesale gas prices have averaged about $2.60 per gallon for the past week. Taxes add about 60 cents to that, transportation and dealer profit is another 5-10 cents. Prices in the L.A./Long Beach area could peak at $3.25-$3.30 by mid-May then they could decline after Memorial Day.

Prices have fallen 25 percent since their record highs in September. After the New Year, motorists can expect prices to begin rising as refineries cut back production to conduct their annual maintenance and begin the process of producing the summer blend of gas, which must be completed by the end of February.

Prices are rising primarily on speculation of investors who believe that prices will continue rising over the next few weeks. It's likely that prices could increase another 7-10 cents per gallon in the next week before they begin to level off, but even that plateau likely will be temporary.

The speculators on the market are pushing the price up - they're worried about oil coming from Iraq, they're worried about what Iran could do to affect the price, they're worried about labor unrest in Nigeria.

Californians use 2 million gallons more of fuel every day than we produce in the state. Oil companies have to buy gas from other sources just to keep even with demand. If every motorist were to save two gallons every week, that would put our demand more in line with our state production.

In the tabloid age, people think that they can say what they want. This is not (covered) by free speech. The truth is you can't just say what you want.

In the last couple of days, prices have been going up by 2 or 3 cents in a 24-hour period. This is likely the same type of rapid price increase that has happened in Southern California every spring of this decade.

Refiners are selling off all supplies of winter grade fuel in advance of next Tuesday's deadline. That has put extra supply on the market, sending prices lower. Motorists can expect to see prices stay near current levels for a couple of weeks. After that, with the extra winter grade supply used up, motorists should expect more upward pressure on retail gas prices.