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Price hikes hit all grades of gas.


The price gap between regular and premium unleaded gasoline traditionally narrows when costs surge, but the latest hike has been bucking that trend, leaving consumers feeling a record pinch across the board.

The price-per-gallon differential between regular and premium unleaded gas in the Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850.  metro area This article is about the music production team. For the article about population centers, see metropolitan area.

Metro Area are a Brooklyn-based dance music production team composed of Morgan Geist and Darshan Jesrani.
 widened to 18 cents on Aug. 27, up from 14 cents on July 27, according to according to
prep.
1. As stated or indicated by; on the authority of: according to historians.

2. In keeping with: according to instructions.

3.
 Oil Price Information Service, a Rockville, Md.-based gas price tracking service.

"I can't recall seeing this before," said Jeffrey Spring, a spokesman for the Automobile Club of Southern California The Automobile Club of Southern California was founded December 13, 1900 in Los Angeles as one of the nation's first motor clubs dedicated to improving roads, proposing traffic laws and improvement of overall driving conditions. . "It's absolutely amazing a·maze  
v. a·mazed, a·maz·ing, a·maz·es

v.tr.
1. To affect with great wonder; astonish. See Synonyms at surprise.

2. Obsolete To bewilder; perplex.

v.intr.
 to me."

There's no lack of explanations for the overall jump in gasoline prices. These include refinery shutdowns, a raptured pipeline, and the massive blackout back East. Another complication: this is happening during the summer months when demand for gasoline traditionally peaks.

But the recent gap between regular and premium is leaving even the experts scratching their heads. Typically, when prices go up, there's more demand for regular than premium because motorists want to save money. During the price hike in 2000, for example, the percentage of premium gas sold dropped to 7.8 percent nationally from 10 percent.

This time, all grades of gas are being produced and sold at roughly the same rate, creating an equal level of demand.

"In the general overall shortage in California, marketers are buying anything they can get," said Daniel Gilligan, president of the Petroleum Marketers Association of America, a trade group representing 8,000 service station owners and gas wholesalers. "Demand is at an incredible high right now. It's conceivable that gas stations are buying premium and selling it at (lower) prices."

He added: "Wholesalers and retailers are not feeling that the demand for premium is decreasing. Therefore, it is rising in a parallel fashion to the other grades of gasoline. California is in such a tight supply-demand balance that these type of events create volatility in the marketplace."

Regular and premium unleaded gas in L.A. averaged $2.13 and $2.31 per gallon, respectively, on Aug. 27, up from $1.69 and $1.83 a month earlier, according to OPIS OPIS Oil Price Information Service
OPIS Ocean Planning Information System (US NOAA)
OPIS Online Procurement Information System
OPIS Online Planning Information Service
OPIS Optical Path Integration Solutions
.

Even with no letdown in premium prices, station owners say they are feeling the pinch.

They have made an average 10-cent profit per gallon over the past three years, said Fred Rozell, director of retail pricing for OPIS. Now, they are virtually at the break-even point break-even point - In the process of implementing a new computer language, the point at which the language is sufficiently effective that one can implement the language in itself. .

Stations need to keep their prices as low as possible to draw customers into their convenience stores The following is a list of convenience stores organized by geographical location. Stores are grouped by the lowest heading that contains all locales in which the brands have significant presence. , where profit margins are higher. "They have to be conscientious of what the competition is doing," said Rozell. "If they move their retail prices too quickly, they will lose volume on the inside sales."

That holds particularly true in Los Angeles County, which has 2,200 gas outlets.

"Even in normal times, refineries are running at 95 to 100 percent capacity to meet the summer demand for gasoline," said Ron Planting, an analyst for the American Petroleum Institute The American Petroleum Institute, commonly referred to as API, is the main U.S. trade association for the oil and natural gas industry, representing about 400 corporations involved in production, refinement, distribution, and many other aspects of the industry. . "If supplies are tight for gasoline, it would affect the supplies for all grades."
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Title Annotation:regular and premium unleaded gasoline prices; Up Front
Comment:Price hikes hit all grades of gas.(Up Front)(regular and premium unleaded gasoline prices)
Author:Greenberg, David
Publication:Los Angeles Business Journal
Geographic Code:1USA
Date:Sep 1, 2003
Words:511
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