Document text
0 of 3 Premium Clicks used this month SUBSCRIBE Print + Online Subscriber Activation | Register x Forgot Password | Need an Account? e-edition | subscribe | newsletter | deals Classifieds Jobs Autos Real Estate FEATURED » NEWS NOW Since You Asked: Wimer Dam fish salvage yields nada natives ... Possible links between dead Oregon man, missing women investigated ... Cemetery tour highlights drifters, saloon keepers ... Since You Asked: Wimer Dam fish salvage yields nada natives ... Possible links between dead Oregon man, missing women investigated ... Cemetery tour highlights drifters, saloon keepers ... GAS PRICES Back to nearly $3 a gallon Cheap gas short-lived as refinery problems jack up costs Comment By John Darling for the Mail Tribune MailTribune.com By John Darling for the Mail Tribune Posted Mar. 4, 2015 at 6:46 PM By John Darling for the Mail Tribune Posted Mar. 4, 2015 at 6:46 PM And we thought gas prices were bad in 1920 --> Editor's note: This column ran on March 18, 2012. Experts say we should expect record gas prices this summer. In the words of baseball philosopher, Yogi Berra, “It ... » Read more X And we thought gas prices were bad in 1920 Editor's note: This column ran on March 18, 2012. Experts say we should expect record gas prices this summer. In the words of baseball philosopher, Yogi Berra, “It’s deja vu all over again.” Anyone remember 1920? That’s when a gasoline shortage took the average price of a gallon of Oregon gas from 17 to 30 cents in less than six months, an increase of well over 75 percent. Most gasoline was still being sold by new car dealers and repair shops and even before gas had reached 24 cents a gallon, it was members of the Dealers’ Motor Car Association of Oregon that offered the loudest protest. “The committee’s opinion,” said their investigative report in June 1920, “is that there is no gasoline shortage and there has not been a gasoline shortage. … “We hazard the opinion that public is being prepared to pay a higher price for gasoline.”  Not so, said Standard Oil Company officials. “There is no mystery in the existing shortage of gasoline,” they said. “It is not a case of diminished supply, but one of increased consumption. The far west has never had so much gasoline as this year.” “Gasoline shortage laid to consumers,” read one newspaper headline. “Oil monarchs use alibi of lower supply,” read another. At the same time, Union Oil, Shell and Associated were rationing gas to their distributors. Of the distributor’s daily allotment of 500 gallons only 20 percent could be sold to pleasure cars and 75 percent was reserved for commercial use. Use of the additional five percent wasn’t specified. The experts predicted gas prices of 35 to 40 cents a gallon by the end of the year, but by the end of July, the shortage in Roseburg was so severe that a gallon of gas was costing 55 cents. The battle lines were drawn and neither side was ready to blink. One letter to the editor called for price regulation by the state. “Is it not most fitting that this commodity, one of the most vital necessities of our age be regulated?” he asked. The U.S. House Judiciary Committee directed the Federal Trade Commission to immediately investigate “recent advances in the prices of petroleum products.” Relief finally came in the fall when supplies began to return to normal and prices slowly dropped. “The local filling stations have all the gas they can sell and every automobile driver can buy all he wants,” said a newspaper. The oil executives were still in a defensive mood. “Perhaps you think the president of an oil company simply says to his colleagues, ‘Let’s raise the price of gasoline this morning,’” said a Standard Oil news release. “Not so. No man, no company or group of companies can control the price of gasoline.” Yes, the shortage had been painful, the release continued, but it was even “more painful to a harassed oil industry.” The motoring public wasn’t so sure about that, but quickly abandoned all of their anger in the dust behind a sputtering motor car — at least until next time. Writer Bill Miller lives in Shady Cove. Reach him at [email protected] .   » Social News Those cruising days of gas for under $2 a gallon have been left in the dust. The cost of a gallon of regular gas accelerated by an average 34 cents this week, giving Oregon the second-largest weekly increase in the nation. According to AAA, Oregon's average roared to $2.82 a gallon, the largest weekly spike since July 2013. The national average, by comparison, rose only 13 cents to $2.44 a gallon, about $1.03 less than a year ago. “What’s going on?" asked an alarmed Bill Miller of Shady Cove, who said he filled two vehicles on consecutive days at the same neighborhood pump and found a 32-cent jump on the second day. "It really annoys me how everyone is so content to pay it, saying at least it’s not what we were paying last year. I’m not a conspiracy person, but maybe prices are being manipulated." Rogue Valley residents back in January were celebrating with Facebook posts of pump prices $1.99 and below. By Feb. 25, however, the average price in the Medford-Ashland area had risen to $2.58. And Wednesday, it was up to $2.97. AAA’s Fuel Gauge Report noted that nationwide, prices rose every day for 35 days straight, the longest such streak in two years. It blamed unexpected outages and seasonal maintenance at refineries that have slowed production. ExxonMobil’s refinery explosion in Torrance, Calif., on Feb. 18 meant trouble for California, which posted the nation's highest average price at $3.39 — unseating Hawaii as the nation’s most expensive market for retail gasoline for the first time since October 2012. AAA spokeswoman Marie Dodds of Portland said in a phone interview that when the refineries are back online, it’s likely prices wil--30--l head toward the new normal we’d gotten used to in the past year. Jumps of 30 to 50 cents a gallon are normal in late winter and spring as refineries shift to cleaner, summer-blend fuel, as required by the Environmental Protection Agency, Dodds said. Looking at the global gas picture in her weekly column, Dodds noted a continuing oil glut — good news at the pump. “Volatility remains a central theme in the global oil market, and reports of increased production from Libya and a rise in exports from Iraq will likely keep global prices on the move," she wrote. "U.S. production companies are beginning to scale back plans for exploration and production ... (in the face of) the global market’s continuing oversupply. Nevertheless, production remains high and stocks continue to build.” Reach Ashland freelance writer John Darling at [email protected]. By John Darling for the Mail Tribune MailTribune.com By John Darling for the Mail Tribune Posted Mar. 4, 2015 at 6:46 PM » Comment or view comments Reader Reaction » STAY INFORMED Email NewsLetter Sign Up Today Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. Southern Oregon Directory Featured Businesses Loading... Business Name address Location, ST | website.com Find Southern Oregon Attractions Bars Restaurants Beauty Salons Entertainment Doctors Medical Specialists Contractors Education Lawn Services Lawyers Shopping Travel Tanning Used Cars Wedding Services ▼ Add your business here + Events Calendar Connect with MailTribune.com Facebook Twitter RSS Back to top Reader Services Reader Services Home Subscriptions Subscriber controls Contact us Submissions Photos Events Letters to the editor Corrections Announcements Obituaries Story ideas Since you asked Alerts Email Alerts RSS Feeds Text Alerts Advertise Media Kit Home Products and services Ad rates Advertising contacts Propel Marketing Mail Tribune Daily Tidings The Nickel Shop Our Valley Blogs Mobile Site Stay Informed Email newsletter Sign Up Today Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. Your privacy is important, read our privacy policy. © Copyright 2015 Local Media Group, Inc. All Rights Reserved. Privacy Policy | Terms of Service | Local Media Group Publications Original content available for non-commercial use under a Creative Commons license, except where noted. MailTribune.com | P.O. Box 1108, Medford, OR 97501