TBO.com - TBO is Tampa Bay Online

Rising Gas Prices Put Bite On Area Drivers

ADVERTISEMENT

By KEITH MORELLI, The Tampa Tribune

Published: February 26, 2008

Updated: 02/25/2008 08:22 pm

TAMPA - Gasoline prices at the pump added more than 2 cents over the weekend nationally, topping a more than eight-month high reached Friday, but consumers have little choice but to play along.

Brian Miller, 40, of Tampa, owns Hammerstone Stucco and Stone and spends about $200 a week to fuel his truck, which he uses to haul equipment on trailers and in the bed. The increase in gas prices has him shopping around. On Monday morning, he put $30 in the tank at a service station on Davis Islands, which was charging $3.15 a gallon for regular unleaded.

"I put a lot of miles on this," said Miller, who also has to fill up two other trucks. "Our gas bills are insane anymore."
Retail gas prices rose 2.2 cents to a national average of $3.137 a gallon from $3.115 Friday, the highest since June 8, according to AAA and the Oil Price Information Service.

In Florida, the cost per gallon of regular leapt 14.5 cents last week, AAA Motor Club South said. The average price of $3.22 a gallon for regular unleaded in Florida was a record. A year ago, Florida drivers were paying $2.30 a gallon.

Many analysts believe gas prices could climb to record national highs between $3.75 and $4 a gallon this spring - though the U.S. Energy Department's latest forecast calls for gas prices to peak near $3.40 a gallon this spring.

But most say the run-up is only in response to oil's recent spike to a new record above $101 a barrel.

"We've just about caught up with the wholesale surge. There's always lag between wholesale and retail," said Tom Kloza, publisher and chief oil analyst at the Oil Price Information Service in Wall, N.J. "This is a little bit of a false start to a rally that has more to do with oil and not as much with gasoline."

Other analysts also point to inventory levels at a 14-year high that won't support these prices for long.

"We have record high prices, but we don't have record tight inventories," said Tim Evans, an energy analyst at Citigroup Global Markets. "The gasoline market is not physically in bull market territory. Whether traders acknowledge this or not, these are bear market conditions."

Evans pointed out that gas supplies have risen for 15 straight weeks.

"To some extent this is what happens in winter because seasonally demand tends to be weak. But demand has been weaker than a year ago, which has allowed inventories to accumulate at a faster rate," he said.

On Monday, light, sweet crude for April delivery gained 42 cents to settle at $99.23 a barrel on the New York Mercantile Exchange. It climbed as high as $99.70 a barrel earlier on supply concerns heightened by a Turkish military incursion into northern Iraq and warnings by Iran against further international sanctions.

Some analysts noted that some investors had invested heavily in crude, betting that prices will continue to rise, and that this was likely to contribute to volatility in the market.

The spiking price of gasoline has especially hit home for those who drive larger vehicles. Larry Correa, 50, of Tampa, who owns Diversified Floor Care and uses his truck for business, said he puts about 500 miles a week on the vehicle. Correa said his Ford F150 drinks $80 to $100 a week, prompting him to shop for the lowest prices. Each time the price goes up, his profit goes down, he said.

"If I find it cheaper," he said, "I'll fill it up."

He hopes the experts are wrong and the prices will ease, but he's doubtful. He's thinking of getting a smaller truck since most of the work is done by subcontractors.

Information from The Associated Press was used in this report. Reporter Keith Morelli can be reached at (813) 259-7760 or kmorelli@tampatrib.com.

Share this:

Loading Comments...

Email Print

ADVERTISEMENT