Gas prices on rise just in time for Memorial Day

Tommy Mann, Jr.
The Orange Leader

May 21, 2009 09:14 pm

— Retail gasoline prices are on the rise in Texas, but a weekly AAA Texas survey released Thursday shows the cost is still well below last year.
According to Associated Press, the price of regular self serve at the pump rose 9 cents in Texas to $2.26 per gallon with the approach of Memorial Day. That is about 25 cents higher than last month, but about $1.40 per gallon less than one year ago.
The national average rose 9 cents to $2.36 per gallon, according to an auto club statement.
San Antonio has the cheapest gasoline in Texas at $2.21 per gallon. That’s about 9 cents below last week. The most expensive gas in Texas is in El Paso, where regular self serve averages $2.30 per gallon, 16 cents more than last week.
A survey of 24 fuel locations in the Orange area, including Little Cypress, West Orange and Pinehurst, revealed an average price of just over $2.27 per gallon of regular unleaded gasoline.
The lowest price found on Thursday was at the Kroger fuel stop, located on 16th Street in Orange, with an advertised price of $2.17 per gallon. That does not include customers using the Kroger Plus card, who receive an additional deduction of 3 cents per gallon.
The highest advertised prices found on Thursday included an Exxon fuel stop on 16th Street and the Shell convenience store at the corner of 10th Street and Green Avenue. Both stores offered regular unleaded at $2.35 per gallon.
A survey of 12 fuel locations in Bridge City and Orangefield revealed an average fuel price of $2.29 per gallon for regular unleaded gasoline.
The least expensive fuel in this area was at the new Chevron convenience store, located at the corner of State Highway 62 and State Highway 87, which sold regular unleaded at $2.23 per gallon.
The most expensive advertised prices found in this area on Thursday included the Exxon convenience, at the corner of FM 105 and FM 1442, and the Valero convenience store, located at the corner of FM 408 and FM 1442. Both stores were selling regular unleaded gasoline at $2.34 per gallon.
A survey of 20 fuel locations in the Vidor area revealed an average price of slightly more than $2.28 per gallon.
The least expensive fuel price found was at the Valero location on North Main Street, which offered regular unleaded gasoline at $2.23 per gallon. The most expensive was the Shell convenience store, located on the corner of North Main and the Interstate 10 service road, at $2.33 per gallon.
AAA spokesman Dan Ronan says gasoline prices normally increase with the approach of the Memorial Day holiday. He also noted that crude oil prices have risen and that the retail market has shifted to more-expensive summer-blend gasoline.
Ronan says the Oil Price Information Service, which tracks retail gasoline prices, doesn’t expect gasoline to reach the $4 per gallon level seen last summer.
West Orange resident C.J. Callahan said he is not surprised gasoline prices have increased recently.
“I read one article that talked about how all of these oil companies reported their earnings were down this quarter,” Callahan said. “So, I figure this recent price increase must have something to do with that.”
Callahan said he does not believe prices will reach the $4 per gallon level again, but he said rising prices probably impact senior citizens more than most other age groups.
“It has to be hard for some elderly people who live on a fixed income,” Callahan added. “Especially if they travel to Beaumont or Port Arthur to the doctor’s office. I don’t understand why the government can’t step in and do something about it. I know it’s not $4 a gallon yet, but here we go again (with rising prices).”
According to the Associated Press, AAA estimates 32.4 million people, or about one in 10 Americans, will travel over the holiday, most of them driving. That’s a slight 1.5 percent increase from 2008.
Vacations make a lot more sense for many families than they did last year. Airfares, hotels and tourist attractions are all cheaper this year because of the relentless recession.
Gas is no exception. For much of this year, there has been a glut of gasoline in storage around the country, keeping prices low. And demand has been light because of the poor economy.
But gasoline has jumped in May. Oil refineries, trying to make money just like any other business, are taking in less oil because of the glut in gas, and those cutbacks are showing up at the pump.
At the same time, prices are starting to rise for seasonal reasons. Americans drive more in summer, and federal and state laws require different, more expensive gasoline blends this time of year.

Tommy Mann Jr. is a reporter for The Orange Leader. He can be reached at 409-883-3571, Ext. 2619 or tmann@orangeleader.com

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