For Drivers, Gas Prices Only Go Up

Gasoline prices are rising minute-to-minute these days. 

The California State Automobile Association released its monthly gas price survey this week. It shows the average price for a gallon of unleaded regular in Northern California has risen to $4.17, a 27 cent leap from a month ago.

In the East Bay, the average price has jumped to $4.24, a 28 cent hike from a month ago. That's also a 16 cent increase from one week ago... an average of more than two cents a day.

In San Lorenzo, a gallon of unleaded regular now costs between $4.08 and $4.25.

A year ago, the average price in the East Bay was $3.10. That's $1.14 less than it now costs.

For many, high prices at the pump mean less take-home pay.

"My car, I gotta put $60 every three days," said David Morehead,  20, who was filling up Wednesday afternoon at the ARCO on Hesperian Boulevard.  

He said gas prices have cut into the tips he makes delivering pizza.

"I'm making money, but I could be making more If I weren't paying so much for gas," he said. 

For others, high prices have meant buying only enough gas to get through the day. 

Local mom Jill Haddan had given up filling her SUV. Instead, she was gambling to see how far $10 would get her. 

"It's expensive, especially if you have a large car," she said. "I try to carpool a little more with people picking up the kids and dropping them off."

What's behind the rise?

The rise in gas prices has occurred despite the fact the demand for gasoline has decreased across the United States the past couple weeks.

Officials at AAA say the weak U.S. dollar as well as unrest in Libya, Syria, Yemen and other Middle East countries is helping fuel the rise.

However, they say the biggest cause is speculators on the commodities market.

"Investors continue to be the largest force driving the market price for oil," said Matt Skryja, an AAA Northern California spokesman. "Instability in the Middle East and North Africa still has them concerned about the world's supply of crude, which has helped keep oil prices on the rise."

Jay McKeeman, the vice president of government relations for the California Independent Oil Marketers Association, agrees.

He also blames speculators for the high price of gasoline.

"It's all because of the price of crude. As crude prices rise, the price of gas rises," McKeeman said.

Sean Comey, a spokesman for Chevron Corporation, said about two-thirds of the cost of gasoline comes from the price of crude oil. He added most of the rest of the price is due to federal, state and sales taxes.

Some critics contend oil companies should accept a smaller profit margin during these economic times. However, Comey said Chevron reinvests its earnings into exploring and developing new sources of oil and natural gas as well as producing alternative energy such as geothermal power.

He noted Chevron earned $19 billion in 2010, but it spent $22 billion on energy exploration and development. The company plans to spend $26 billion this year in its capital and exploratory budget.

Pump up those tires

Carlos Dasilva, assistant service manager at , had a few tips for drivers hoping to get better gas mileage.

"Keeping your maintenance up: tune-ups, oil changes, fuel system cleanings and tire pressure. The little things help," Dasilva said.

"Don't neglect your tires, you'd be surprised how much mileage you can get just by making sure the tire pressure is up," he added.