Gas price hikes stress Merced wallets

Gas prices in California are once again the highest among the nation. The state average has jumped 22 cents per gallon since Friday, and the wallets of Merced residents are feeling the difference.

California is the most expensive market for retail gasoline with an average price of $3.72 a gallon, according to the latest AAA Fuel Gauge report.

The price hike in California comes as many other states are experiencing a steady decline, the report says.

The reason for the price increase is attributed to a tightening of supply in the state. According to reports, despite refineries exceeding last year’s production rates, a high demand for gasoline has resulted in significant consumption and distribution systems have not been able to keep up, the report says.

Often supply is delivered only as demand requires. This can lead to significant spikes in prices when the supply and demand are out of balance, the report said. Prices are expected to keep moving up until supply issues are resolved, the report says.

The rise of gas prices is adding pressure to Merced residents’ budgets. On Monday, customers pumping gas at the Arco on G Street and Olive Avenue said they’ve already made changes to their travel routines.

Laura Griffin of Merced said she tries to stick to driving only when necessary – usually only from home to work and back.

“Carpool and pitch in for gas,” Griffin said about preferring to travel with others. She also tries to fill up when driving to other cities with lower gas prices. “Like when I go to Turlock; gas seems to be cheaper there.”

Meced resident Dixie Paul said she usually fills up her tank with about $40, but it’s always a little more during the summer.

“It almost seems like a coincidence that prices go up during the summer when everyone is getting ready to travel,” she said.

Driving a smaller, gas-efficient car, preferably a four-cylinder, also helps, she said. Paul said she searches for the most inexpensive prices when traveling down Highway 99.

Alaska, Hawaii and Nevada follow California on the list of most expensive gasoline markets. Motorists in South Carolina and Mississippi pay the least to fill up their tanks.

While domestic supply factors have great influence on gas prices, global crude oil prices are also contributing to the lower prices in most states, AAA said. The impact of the Greek debt crisis and diplomatic negotiations, for example, pushed crude oil prices to new lows.

This story was originally published July 13, 2015 at 5:21 PM with the headline "Gas price hikes stress Merced wallets."