Oil companies roll out their new, cleaner gasolines; federal rules mandate sale of gas with fewer pollutants.

Unocal Corp. unveiled its new, federally mandated, cleaner-burning gasoline with a splashy advertising campaign last week, while other major gasoline marketers quietly started pumping their new gas without much fanfare.

Federal law mandates that all gasoline marketers in nine metropolitan areas in the U.S. with serious air pollution problems -- including the greater Los Angeles Basin -- sell only reformulated gasoline beginning Jan. 1, 1995.

"It is the cleanest gasoline that has been produced to date," said David Howekamp, director of air and toxic division of the San Francisco office of the U.S. Environmental Protection Agency.

Federal law mandates that the new gas contains 15 to 17 percent fewer smog-causing chemicals and toxic chemicals than conventional gasoline, Howekamp said. The oil industry estimates that it costs 3 cents to 5 cents more a gallon to produce, he added.

L.A.-based Unocal has been advertising the fact that it has been selling the gasoline since early December in a television, radio and newspaper ad campaign which touts "a cleaner gasoline for a cleaner Earth."

J. Wayne Miller, manager of Unocal's Fuels Technology, said most of Unocal's about 690 gas stations were pumping the gas on Dec. 1.

Miller said the company introduced it early and advertised it, "mainly because we were in favor of this new product and we thought we'd say something about it."

But two major gasoline markets and oil industry experts say that gasoline dealers have been delivering the new reformulated gas to Southland gas stations since Dec. 1 in order to meet the Jan. 1 deadline.

Costs rise

Although the gasoline costs more to produce because of outlays for new equipment at oil refineries, that tab has not been passed on to Southlanders at the pump yet, oil industry experts said.

The price of unleaded, self-serve gasoline in the greater Los Angeles area actually fell by 0.86 cents to $1.26.38 from Nov. 18 to Dec. 2, said Trilby Lundberg, editor of the North Hollywood-based Lundberg Report, a twice monthly survey of gasoline prices.

Lundberg said the decline may be due to gasoline wholesalers selling the old, conventional gas at a discount, in order to prepare for the new, reformulated gasoline.

Slightly lower crude oil prices may have also contributed to lower pump prices, Lundberg said. But more significantly, she said, is the fact that gasoline dealers are "purging the system" of old gasoline.

Shortage questions

In the next few months, prices may rise because the new gasoline costs more to produce, Lundberg said. But the amount of increase, if any, will depend on other factors as well, including crude oil prices and price competition in the market, she added.

Howekamp of the EPA said it was possible, but unlikely, there could be "spot shortages" of the new gasoline in the first few months of delivery. If that happens, gasoline prices may be driven up.

Scott Loll, spokesman for L.A.-based Atlantic Richfield Co., said Arco stations began receiving its version of the new gasoline in early December. "By the middle of the month, we hope to have most of our stations pumping the reformulated gasoline," he said.

Loll said Arco may mention it's pumping new, federally mandated gas in its advertising. But reformulated gasoline "is not something new for Arco," Loll added.

"Arco was the first (oil company) to produce reformulated gasoline," he said. "Arco has had reformulated gasoline since September of 1989."

San Francisco-based Chevron Corp. has not advertised that it is pumping the gas because "it is mandated for all companies and is not something special or specific to Chevron," said Amy Greenawalt, Chevron spokeswoman.

Also, she said, "all reformulated gasoline has the potential for problems."

Greenawalt said the reformulated gasoline may reduce vehicles' miles per gallon by 2 to 3 percent. In addition, it may be more difficult to start cars in cold weather with the new gasoline, she said.

Miller of Unocal said the new gas is part of a two-stage plan for cleaner-burning gasoline in California. Next year, under a state law, all gas stations throughout California must sell an even cleaner-burning gasoline, Miller noted. That reformulated gasoline will cost 15 cents to 25 cents a gallon more to produce, he noted.