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Holiday travel gas will cost more Oregon price falls to 4th place By DAVID PRESZLER Top 10 highest average gas prices 1. Hawaii............$1.488 2. Idaho..............$1.459 3. Nevada...........$1.450 4. Oregon...........$1.447 5. Connecticut....$1.425 6. Washington....$1.405 7. California........$1.396 8. Montana.........$1.387 9. New York.......$1.376 10. Utah.............$1.367 Source: AAA Gas prices aren't likely to make many what-are-you-thankful-for lists this week. Though Rogue Valley prices have shed a penny or two in recent weeks, gas is still 25 to 30 cents a gallon higher than it was a year ago. Motorists leaving town today will find prices around the $1.30 mark for regular unleaded. In early December last year, Rogue Valley prices were in the $1.03- to $1.11-a-gallon range for regular unleaded. But there is something to be thankful for. Rogue Valley prices are well below the statewide average. The Thanksgiving Fuel Gauge survey by AAA found the state's average price for regular unleaded at $1.44 a gallon -- 30 cents higher than it was a year ago. After spending part of this year with the nation's highest gas prices, Oregon ranked fourth among states behind Hawaii, Idaho and Nevada. Hawaii had the highest average price at $1.48 a gallon. And prices aren't expected to drop anytime soon. "It looks like we are going to see prices increasing some through the end of the year," said AAA spokeswoman Anne O'Ryan. She expects the combination of higher crude oil prices and fears about supply issues related to the Year 2000 computer problem will keep prices climbing. She said prices may even rise some during the Thanksgiving weekend. Locally, the lowest prices are believed to be at Costco, where members could fill up Tuesday for $1.27 a gallon. At the Arco AM/PM on South Pacific Highway, prices will be lowered to $1.29 a gallon today, according to owner J.R. Waugh. Other discount stations were at around $1.31 Tuesday with stations such as Exxon, Texaco and Chevron in the $1.39 range. Nationwide, the AAA survey found average prices at $1.28 -- 22.8 cents higher than a year ago and 16 cents lower than Oregon's average. The root cause of the high prices is thought to be higher crude oil prices, inspired by international efforts to reduce supplies. The price of crude oil recently hit its highest level since 1991 and analysts say it could top $30 a barrel by year's end. "It is by no means certain that crude oil prices will maintain their current higher prices," national analyst Trilby Lundberg told The Associated Press. "But if they do, gasoline prices would continue to climb because they have not caught up with the higher cost of the raw material." After near record lows last winter, gas prices shot up in the spring -- prompting outcries of price-fixing from consumers and politicians. In June, Sen. Ron Wyden, D-Oregon, asked the Federal Trade Commission to investigate whether gas companies were illegally fixing prices. The FTC is still investigating and it's unclear when it will announce its findings, according to Wyden's office. A California probe into gas prices found no evidence of price fixing but state officials said a lack of competition has hurt consumers there. In a report released this week, the state attorney general's office concluded that California residents paid $1.3 billion more than they would have if they lived in states where more companies refine oil. Six companies control 90 percent of that sate's refining capacity and the retail gasoline market. Mergers have been proposed between BP Amoco PLC and Atlantic Richfield Co. (the parent company of Arco) and between Mobil Corp. and Exxon Corp. The FTC is reviewing both deals. The $27 billion deal between BP and Arco is already affecting the Rogue Valley market, according to Waugh. He says BP is exerting influence on the way Arco does business, undermining their commitment to be the lowest priced stations. "We only went with Arco because they were going to be the lowest," said Waugh, adding that he is exploring becoming an independent station. Mail Tribune Copyright � The Mail Tribune 1999, Medford, Oregon USA