Gas prices spiked last week, reaching a new record high of $2.667 per gallon in the Bay area. The price is the highest regional average in the state and among the highest in the nation, according to the American Automobile Association.
"Basically every one of the last few days has brought us a new record," said AAA spokesperson Sean Comey.
The national average has also reached a record high, though its $2.265 mark falls 40 cents shy of Bay area prices.
"California has a different kind of gas than the rest of the country does, which costs more to make," explained Comey.
Market factors also influence Golden state prices, such as fewer unique owners of retail stations, creating less competition and therefore less pressure to lower prices. In the Bay area, steep costs to business owners drive prices even higher.
On average, area gas prices have risen 50 cents since mid-January, say market watchdogs. The $2.267 price consumers saw one month ago are less than a cent higher than the prices of a year ago, though there was much variation in between. National low points included prices in the $1.80 range in September of 2004 and January of 2005.
"The cost of crude oil has gone up dramatically," said Comey. "It is more than 50 percent higher than last year, which is the principal reason gas prices have gone up."
With rising fuel prices, some consumer organizations predict growth in hybrid vehicle sales. These fuel-efficient vehicles use both gas and electric power and typically offer between 30-45 miles per gallon in sedan models.
Automotive market researchers Polk & Co. reported a 25 percent growth in registrations of hybrid vehicles in 2003, with Californians driving the lion's share.
This growth put 43,000 new hybrid vehicles on the road across the U.S. in 2003, compared to 34,000 in 2002 and only 6,500 in 2000.
Many car manufacturers now offer hybrid models, with Honda's Civid Hybrid model (32 mpg) accounting for 50 percent of hybrids sold in 2003. Toyota's Prius (55 mpg) made up 47 percent.
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Ford now offers a hybrid SUV, the 34 mpg Escape, which made the American Council for an Energy-Efficient Economy's "greenest" list for 2005. GMC's new hybrid truck (19 mpg) is about to hit stores.
"We're taking numbers from customers interested in the new Sierra hybrid," said Art Sabahi of Putnam Buck-Pontiac-GMC in Burlingame. "We're looking forward to when it comes out."
Still, this growth is more likely an evolution than a revolution, said Comey.
"Are people going to trade in their Hummer for a Prius? I doubt it," he said. Despite astronomical fuel costs and unpredictable price changes, most consumers still rate fuel efficiency among the least important factors they
consider in buying a new car.
In the mean time, those feeling the pressure at the pump can keep their costs down by maintaining proper air pressure in their tires and by shopping around for gas. In San Mateo, prices among stations varied by up to 20 cents per gallon.
Many cars don't need premium octane or name-brand gasoline.
"The only difference between name-brand and generic gas is the additives, and the jury is still out on how useful
those are," said Comey.
"When I fill my tank up, I go to the station with the best price."
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