Sat 13-Jan-2001

Gas pump prices take another leap

Consumers pinched by high natural gas prices take another hit with second round of gasoline increases

By Steve Wideman Post-Crescent staff writer

Gasoline and some home heating oil prices took steep increases this week as energy prices continue to squeeze consumers' pocketbooks.

Retail prices for gasoline began the week at about $1.40 per gallon and by Friday had climbed to as high as $1.59.9 at some Fox Cities stations.

The price for a gallon of No. 1 home heating oil, which is primarily used for homes with outside fuel tanks, generally rose by a dime in the Fox Cities this week to $148.9.

The price for No. 2 home heating oil, a more widespread option, rose slightly to $1.31.9 a gallon.

One Fox Cities distributor said he is being told prices charged to him at fuel terminals are up due to short supplies of finished products.

"That's the story they are giving us," said Bruce Levenhagen, president of Levenhagen Oil Corp. in Neenah.

Levenhagen said prices charged at the terminal increased by 11 cents a gallon in a week.

Levenhagen said prices for diesel gasoline and home heating oil are increasing thanks to record high prices for natural gas.

"Hospitals and paper mills and most industries have switched to heating oil because of the high price of natural gas," Levenhagen said.

State utilities have said natural gas prices increased from 18 to 20 percent for gas consumed in January vs. December, when many homeowners suffered bouts of sticker shock when they opened their utility bills.

He said it was too early to predict on Friday how high fuel prices will go or how long the price increase trend will continue.

"I think it's going to be short term," he said.

The U.S. average retail price for gasoline rose last week after five weeks of decline.

According to federal government statistics, price changes were mixed and small for most regions with the exception of solid increases in the Midwest. including Wisconsin.

The increases came in spite of a significant reduction in demand last week that allowed supplies of gasoline to build in the face of lower-than-normal production levels, according to the Energy Information Administration, the statistical arm of the federal Department of Energy.

Information posted on the EIA's Web site indicates motor gasoline stocks were up 1.9 million barrels in the past week to end the week at 195.7 million barrels.

A survey by the EIA found gasoline spot prices increased strongly east of the Rocky Mountains last week.

The EIA survey also found the increases were fueled by reports the Organization of Petroleum Exporting Countries is working toward an unified agreement to significantly cut oil production. A decision on production cuts is expected Wednesday during an OPEC meeting in Vienna.

Levenhagen confirmed reports of OPEC production cuts are likely playing a part in the higher price of gasoline from refineries.

The EIA also said there are concerns with heavy maintenance scheduled at numerous oil refineries in the first half of 2001.

http://www.wisinfo.com/postcrescent/news/011301-1.html

-- Martin Thompson (mthom1927@aol.com), January 13, 2001

Answers

GAsolene is $163.9 in Minneapolis. Natural gas went up 58%.

-- John Littmann (littmannj@aol.com), January 14, 2001.