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Oregon Road Conditions & Cams Email Story to a Friend March 17, 2006 Gas prices on the rise again By JOHN DARLING for the Mail Tribune Dig deeper in your pocket because gas prices are on their way up again — five to 10 cents in the Rogue Valley in just a few days — and the explanation is a complex one, dating back to supply problems around hurricanes Katrina and Rita. The storms trashed refineries in the Gulf, so Americans were allowed to burn winter- grade gas in late summer and fall and import lots of European gas, both of which burn dirtier than our summer gas, explained Elliott Eki, spokesman for Oregon AAA in Portland. This kept supply up and prices down. As refineries get ready now to move into summer grade fuel, which burns cleaner, they had to sell off the European stuff, which doesn’t meet U.S. emissions standards. That kept prices down, too. But now that’s gone, so prices are moving up, said Eki. When the hurricanes hit, a lot of refineries were getting ready to shut down for seasonal maintenance — but, to take up the slack for the damaged refineries, they kept going. Now they really have to shut down for maintenance before shifting to the cleaner burning gas, he said. It’s March and demand is still low, only 1 percent over last year, said Eki. The normal increase in demand would be 2 to 3 percent, so that helps keep prices lower than they would be, he added. Prices have also been helped by the lack of big storms since Rita. Advertisement The Rogue Valley, as usual, is posting the highest prices on Oregon’s I-5 corridor. The AAA Fuel Gauge Report on Thursday reported the average for unleaded regular in the Medford-Ashland area was $2.494 a gallon, compared to $2.389 in Eugene, $2.327 in Portland and $2.307 in Salem. AAA’s report takes its price information electronically at about 3 a.m. each morning, and a quick telephone survey of Rogue Valley stations mid-day Thursday showed generally higher already — $2.489 at Ashland Astro, $2.569 at Phoenix Discount Gas, $2.579 at Gas4Less in Medford and $2.699 at Ashland 76. According to the authoritative Oil Price Information Service, which provides the data for AAA’s gas price survey, gas prices should level off in mid-April at pre-Katrina prices. That translates to about $2.78 for regular in the Rogue Valley, Eki said. Local stations said customers bring in plenty of speculative stories about increased prices, including terrorist activity in the Mideast, blizzards and tornadoes in the Midwest and schemes of politicians and oil barons. "We hear a lot of rumors from people getting gas, but we don’t have any inside knowledge," said Renzo Biedak of Ashland Astro, noting that his low price might have to go up today. Ken Hanks of Phoenix Discount Gas said gas prices generally go up at spring break (next week), because people get out and drive as weather finally gets nicer, increasing demand. Tornadoes in the Midwest, just like Hurricane Katrina, cause disruption in supply routes, causing prices to climb, he added. An Associated Press story pegged recent rising oil prices to militant attacks on refineries in Nigeria, Iran’s nuclear standoff with the West and a drawdown of inventories due to normal spring maintenance at refineries. John Darling is a freelance writer living in Ashland. E-mail him at [email protected]. Mail Tribune Home | Local News | Sports | Business | Obituaries | Life | Opinion AP News | Archives | Site Map | Community | Classified Copyright © 1997-2006 Mail Tribune, Inc. All rights reserved. Privacy Policy | Terms & Conditions | Website Feedback www.bingo.com Absinthe Supply Home Security Systems Trunks, Footlocker Custom Build Computers Computer Security Discount Hotel Reservations online casinos news Debt Consolidation California Casinos Generic Viagra Windermere Van Vleet Deep Muscle Stimulator Sports Equipment Online Casino Reviews Hammocks Online Bingo Entertainment Guide Online Casino Fundraisers Sudoku Online Casinos Canada King of Spirits Advertisement s Advertisement