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Oregon Road Conditions & Cams Email Story to a Friend August 24, 2005 Valley’s ever-rising gas prices could slow in September By DAMIAN MANN Mail Tribune Gas prices in Jackson County remain some of the highest in the country at a record average of $2.78 a gallon for regular, but other areas in the nation have been catching up. The national average was $2.61 a gallon Tuesday, just three-tenths of a cent behind a record set Monday, according to AAA’s Daily Fuel Gauge Report. During the past month, the price of gas in the Medford-Ashland area has risen 24 cents a gallon, but nationally it jumped 32 cents, said Dave Carlson, spokesman for AAA in Oregon and Idaho. "You guys have been above the U.S. benchmark," he said, noting that only four states now average below $2.50 a gallon. Carlson said it’s too early to predict whether prices will level off or decline nationally, though with demand tapering off in September the pump price generally drops. Advertisement International factors haven’t put upward pressure on gas prices in the last few days, he said. "Crude-oil prices haven’t made one of those $2- or $3-a-barrel increases," he said. "There is no new destabilization in the world." The Medford-Ashland area still has the distinction of having the highest average gas price in a metropolitan area in Oregon. Eugene averages $2.67 a gallon; Portland is $2.58; and Salem is the lowest at $2.56, according to AAA. The closest large city to the south, Redding, is just behind Medford at $2.77 a gallon. Carlson said so-called "zone-pricing" could be a factor in the Medford area’s prices. "I suspect it may be one of the things to look at," he said. "It describes more regionally why prices are up." Oil companies are reluctant to talk about zone pricing in general, said Carlson. But the AAA spokesman said he thinks oil companies "basically look at what the market will bear — what the demographic profile of the customer will look like." Carlson said it would be difficult to determine why Medford’s gas prices are comparable to prices in Los Angeles when four or five years ago there was a 20- to 25-cent gap. However, during that period, a significant number of Californians have moved to the Rogue Valley. "It could be the nature of the community’s changing and the oil companies know that," he said. Regular gas is not the only grade that has hit all-time highs in Medford. Diesel is at a record $2.90 a gallon, premium is $2.97, and the middle grade of gas costs $2.93 on average. A year ago, the average price for a gallon of regular gas was $2.05, representing a 36-percent increase. Despite high prices, consumption of gasoline has exceeded last year, according to the U.S. Department of Energy. The four-week average ending Aug. 12 showed 9.482 million barrels of gas consumed daily compared to 9.392 million barrels during the same period in 2004. AAA has also seen car rental and hotel bookings increase by 5 percent over last year. "The demand is so strong, it reflects why we are having higher (gas) prices," said Carlson. Reach reporter Damian Mann at 776-4476, or e-mail Valley�s ever- rising gas prices could slow in September ">[email protected] . Mail Tribune Home | Local News | Sports | Business | Obituaries | Life | Opinion AP News | Archives | Site Map | Community | Classified Copyright © 1997-2005 Mail Tribune, Inc. All rights reserved. Privacy Policy | Terms & Conditions | Website Feedback www.bingo.com Home Security Systems Trunks, Footlocker dvd-r Distance Education Computer Security Ztech Media Hosting Sports Equipment Online Casino Reviews Student Loans tcg student loan consolidation Online Pharmacy online casino Myspace Home Equity Loans Windermere Van Vleet Rogue Valley Travel Reservationstogo Hotel Reservations Southern Oregon Loans Online Casino News Natto Kinase Nattokinase Casino Gambling Sites Budget Website Templates Investments & Loans Advertisement s