Access Denied You are not allowed to see the page. If you have any queries about this error, please e-mail webmaster@orig.desertsunonline.com. Back to orig.desert-sun.com homepage [ Powered by Zeus Web Server ] More stories on Gas Prices Why we pay more at pump Experts point to three reasons why Palm Springs' gasoline prices are jumping: Resort town: Gas often costs more in a tourist-driven economy. Location: Being more than 100 miles away from the nearest California refinery means we pay more to cover delivery costs. Supply: Southern California's market is now tighter than Northern California's. save at the pump Find out how you can conserve gas and save money at the pump multimedia Interactive graphic: A look at what influences gas prices, world gas prices, and the future of energy sources. your business Is your business suffering from the high cost of gasoline? Post or read comments in our online forums

By Trey Clark
The Desert Sun
May 19th, 2004

At $2.491, Palm Springs tops the Automobile Club of Southern California list of average price of regular-grade gas in California cities, released Tuesday.

Compared with the national AAA Daily Fuel Gauge Report, which tracks gas prices in metropolitan areas throughout the United States, the Palm Springs rate is a record for any region in the country except for Hawaii.

It's nearly a 25 percent increase from last May, and a 49 percent increase since January 2003.

"The highest prices moved south from San Francisco to Santa Barbara and now to Palm Springs," said Jeffrey Spring, a spokesman with the Automobile Club of Southern
California.

Some local residents were upset by the news, saying the new distinction is just a kick when consumers are already down.

"It's ridiculous - soon no one will be able to go anywhere," said Susan Olvera of Cathedral City. "You drive to work and then you drive home - nowhere out of the way."

Coachella Valley drivers are paying 68 cents more for a gallon of gas than drivers in Casper, Wyo., the city with the lowest average price.

How did Palm Springs gasoline get this expensive?
Experts cite a combination of factors.

Location: Palm Springs is more than 100 miles from the state's nearest refinery, so the higher cost of delivery is passed on to consumers at the pump.

Tourist economy: As with other products, gasoline often costs more in areas that count tourism as a strength.

Supply: The Southern California gasoline market is currently tighter than its Northern California neighbors, which is rare.

"You tend to see higher prices in places like San Francisco, where real estate is more expensive and it costs more to do business," said Rob Schlichting, a spokesman with the California Energy Commission.

Carolin Keith, a spokeswoman with Exxon-Mobil, said the high Palm Springs prices are part of a natural movement.

"There haven't been any breaks in pipelines or other refinery problems," she said. "It appears that traditional reasons for rising prices (are) just affecting Palm Springs more than other areas right now."

The national average gasoline price hit $2 a gallon this week, setting a record, although prices were higher in the 1980s if adjusted for inflation.

Oil prices are also at record highs partly because of fears that fighting in the Middle East could disrupt crude supplies, said John Kingston, global director of oil for Platts, an energy publication. But the real force pushing oil and gasoline prices higher is a heavy global appetite for energy, he said.

Last week, the International Energy Agency said global appetite for oil was growing by 2.5 percent annually, a rate not seen since 1996.

The Bush administration said it had been talking to OPEC nations about raising oil output, and White House spokesman Scott McClellan said Tuesday that Secretary of Energy Spencer Abraham would talk with them again this weekend at a European energy conference.

Meanwhile, several Democratic senators Tuesday also urged the Bush administration to start selling off oil from the nation's Strategic Petroleum Reserve, an emergency oil supply.