Gilroy
– The city’s gas prices are in the record books.
Regular unleaded will likely jump a few cents by today, but the
average cost for a gallon in Gilroy was $2.52. The average gasoline
price in the state reached a record of $2.464 Monday and kept
climbing.
By Lori Stuenkel
Gilroy – The city’s gas prices are in the record books.
Regular unleaded will likely jump a few cents by today, but the average cost for a gallon in Gilroy was $2.52. The average gasoline price in the state reached a record of $2.464 Monday and kept climbing.
One man, filling his high-performance coupe with 91 octane Wednesday afternoon, summed up what many drivers were feeling:
“It’s painful,” he said, as the cost to fill his 15-gallon tank ticked up to $37.58.
Jorge De La Cruz, owner of South Bay Tree Care, said he tops off his company pick-up at least once a day. Wednesday, that cost him $26.92 at the Chevron station at Monterey Road and Travel Park Circle, where a gallon of regular unleaded was $2.61.
“It’s affecting us a lot,” De La Cruz said. “It’s out of my hands because I have to drive a lot. I drive from Salinas to San Jose five days a week.
“You can’t raise the prices (of services) because then you lose business.”
Instead, he tries to keep his personal miles to a minimum.
As drivers rack up the miles during spring and summer months, there are some steps they can take to get the most bang for their buck, said one mechanic.
Keep tires properly inflated. Get oil changed regularly. Replace air filters as needed. These steps can improve gas mileage by as much as 15 percent.
“A lot of people will have a problem with their vehicle – the check engine light will come on – and they’ll ignore it,” said John Singleton, head mechanic at the 76 station on First Street. “Have that looked at.”
Often times, the “check engine” light turns on when a sensor is malfunctioning, Singleton said.
“That can make a car run rich and when it runs rich, you’re wasting gas,” he said.
Getting a tune-up can improve gas mileage, as well.
Singleton said he heeds his own advice, but is considering trading his scheduled road trip to Oregon this summer for an airplane flight.
“When you start thinking about going somewhere far away and you can fly and it’ll cost less, you might change your plans,” he said.
Gasoline prices began their upward trend in February. The reason for the continued climb: Increased demand in China and the United States; and the high cost of crude oil, which is also in record territory. Monday crude oil was trading at $58.28 a barrel, or 50 percent more than a year ago. If nothing changes, the steep climb is expected to continue.
“I’m expecting to see three dollars by summer,” Singleton said.
Federal Reserve Chairman Alan Greenspan said Tuesday that market forces should help bring prices under control. At an energy conference, he said higher prices might get businesses and consumers to conserve resources. Following his statements, crude oil prices closed at $56.04 a barrel.
City officials are planning on higher gasoline prices as they work over the 2005-06 budget, said Mike Dorn, administrative services director.
On Monday, City Council authorized spending an additional $56,100 on gas and diesel for city vehicles, mostly those used by the police and fire departments.
“It’s because gas prices are so high right now and unfortunately, it’s started to become a regular thing,” Dorn said.
The cost will pull $16,500 from the city’s general fund, and the rest will come from support services and an equipment rental account. The revision is expected to cover costs through June 30, the end of the current fiscal year, but may fall short if petroleum prices increase dramatically, Dorn said.
The city’s regular unleaded and diesel tanks can hold 12,000 gallons each. Depending on usage, the gasoline tank lasts anywhere from 45 to 60 days, while the diesel needs refilling between 70 and 90 days, said Fleet Supervisor Frank Comin.
Gilroy pays wholesale rates for gasoline – about $2 now, up from $1.60 six months ago – and taxes.
Meanwhile, Comin has formed a committee to research the use of gasoline/electric hybrid vehicles. Two electric cars are already used by city employees who travel between offices in town, and have “worked out very, very well,” Dorn said.
“We’re looking at a number of different things: What is out there, and what are our needs, and how can we convert over,” he said.
Hybrid sales across the country have picked up, while those of sport utility vehicles have waned. Gilroy Toyota said interest in the popular Prius has outpaced supply, but the dealership is expecting to receive more as the manufacturer responds to demand.
Electric or hybrid vehicles are not an option for local farmers, who, like De La Cruz, must absorb the additional cost, working on contract. They are hit in other areas, too.
“We’re paying more for anything that’s petroleum-based, which is basically everything we use,” said Ralph Santos of El Camino Packing.
That includes fertilizer – prices are expected to shoot up 20 percent or more, reports The Detroit News – and work done by irrigators and pesticide companies, which drive gas- or diesel-powered vehicles.
According to the Energy Information Administration, crude oil accounts for 49 percent of the price of gasoline, refining is 19 percent, distribution and marketing is 7 percent and taxes are roughly 25 percent.
Recent gas prices
– February 2003: $1.80
– October 2003: $1.88*
– April 2004: Â $2.10*
– January 2005: $1.98
– March 11, 2005: $2.22
– April 6, 2005: $2.52
* for San Jose area
Sources: Gilroy Dispatch surveys and AAA
