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Area gas prices are likely to level off By DAVID PRESZLER Rogue Valley gas distributors say there are signs that the latest spike in prices may fade soon. After big increases this spring, prices crept up farther in the past few weeks, with many local stations charging about $1.55 a gallon for regular unleaded. Prices at several stations have already backed off to $1.52 and some discount stations are as low as $1.49. Dan Hawkins of Medford's Hawk Oil said Thursday was the first day in weeks that the price distributors pay hasn't increased -- a fact that he hopes signals a leveling off of costs. Hawk Oil supplies about 15 stations in Jackson and Josephine counties. "Costs have gone up substantially in the last few weeks," Hawkins said. "It's looking right now like it's plateauing." Gary Mallicoat, manager at Rogue Valley Oil, which supplies many Texaco stations in the valley, says he too has seen the cost increases slow. Mallicoat says he expects prices to drop some -- but not a lot -- by early next week. "It's probably going to stay in the $1.50 range," he says, noting that prices are traditionally higher in summer as demand increases. Problems at West Coast refineries have been blamed for most of this year's increases, and the latest hikes are no exception. Mallicoat says unexpected problems a few weeks ago at a Chevron refinery in the Bay Area put the latest crimp in the supply chain. A pipeline explosion last month in Washington also disrupted supplies. He says that whenever problems like that arise, supply tightens throughout the region and the major oil wholesale companies raise prices. "The oil companies raise the prices and we have to pass it on," Mallicoat says, noting that most local distributors and station owners operate on the same profit margins. The gasoline industry has drawn fire following this year's sudden and prolonged price increases. Sen. Ron Wyden, D-Ore., has led the critics, spurring the Federal Trade Commission to look into whether price-fixing has occurred. Oil industry representatives contend they have not engaged in any anti-competitive gasoline pricing and expect the investigation to find no problems. Early in the year, prices were in the $1.10-$1.20 range in the Rogue Valley and they were even lower in late 1998. Today's Business Index Mail Tribune Copyright � The Mail Tribune 1999, Medford, Oregon USA