E.V. residents expect gas to hit $4 a gallon

Motorists across the East Valley are no longer shocked by rising gas prices, and in fact fully expect to see $4 a gallon next year. “I’m sure it’s going to reach $3 or more,” said Diane Cramer, who filled her tank Wednesday at the QuikTrip at Warner Road and Arizona Avenue in Chandler.

GRAPHIC: Average gas prices

“I’m sure we’ll reach $4 and above, and I’m sure we’ll have to get very serious about fossil fuels.”

This week marks the ninth straight week of higher gasoline prices in Arizona, and an end to the escalation isn’t expected anytime soon, according to AAA Arizona.

“This is really unusual for this time of year,” said Linda Gorman, AAA Arizona’s public affairs manager. “Typically between October and February we enjoy the lowest prices of the year. This is the first time that I can recall in recent memory where prices have spiked this much in this short of a period of time.”

Motorists in the East Valley are paying an average of $2.86 a gallon for regular unleaded, 73 cents more than the same time last year.

In Scottsdale, motorists are paying an average of $2.89 a gallon, compared with $2.19 a year ago.

The highest recorded price in the East Valley is $3.13. In Scottsdale, the highest price is $3.18.

Steve Fruchey, who works as an equipment manager in Chandler, believes gas prices could be lower. He also filled his tank Wednesday at the QuikTrip in Chandler.

“I think it’s overcharging, taking advantage of the situation in the Middle East,” he said. “I drive about 60 miles a day and spend about $200 a month on fuel.”

Paying more for gas means having less money to cover groceries and other expenses, Fruchey said.

“It means Christmas will be a little less this year,” he said.

Oil prices stopped just short of reaching $100 a barrel Wednesday after a government report said oil inventories fell less than expected last week while refinery utilization remained flat. Oil investors largely viewed the report as neutral in that it confirmed a view that oil supplies are falling, but offered no real surprises. A larger-than-expected drop was expected to push oil prices past $100 a barrel for the first time.

“Crude makes up about 65 percent of the cost of gasoline, so anytime we have high oil prices for any extended period of time, it trickles down (to gas prices),” Gorman said. “If you look at what’s driving up the cost of crude ... there’s no tangible reason. So it has to do with speculation among traders that something will happen.”

Mary Welge, an editor with the Oil Price Information Service, said motorists can expect to shell out more money at the pump, at least through the near term.

“The general consensus is crude prices will hit $100 a barrel before falling,” she said. “What that means in terms of price at the pump is higher gas prices for sure. It looks like right now we’re in such an upward trend that nothing seems to be able to stop it.”

Perhaps most worrisome is the possibility that gas prices could already be higher next spring before seasonal increases even kick in, Welge said.

“Come next spring, you’re looking at a market that has the potential to veer higher than we’ve seen,” she said.

The 1980s set the benchmark for high oil and gas prices, until last week, Gorman said.

“Oil has refused to retreat,” she said. “It closed in the $95 to $96 a barrel range Wednesday, so as long as prices stay that high we’re not likely to see any relief.”

At the Food Mart Express Gasoline on Guadalupe and McQueen roads in Gilbert, Leroy White said he expects prices to continue climbing.

“If we get involved in anything with Iran, we’ll see gas prices over $4, probably $4.50,” he said. “If you think we’re in a recession now, think again.”