Toy company executive Carson Lev sells tiny cars for a living. But it's his gas-slurping 1995 Chevrolet Impala SS that's driving him to distraction.
Because of rising gasoline prices, Lev's 136-mile round-trip commute from his home in Laguna Niguel to his office at Mattel Inc. in El Segundo is costing him $103 a week, up from $85 a few months ago.
For The Record
Los Angeles Times Tuesday March 02, 2004 Home Edition Main News Part A Page 2 National Desk 1 inches; 42 words Type of Material: Correction
Gasoline prices -- An article in Monday's Section A incorrectly said retail gasoline prices might ease soon because of declining crude oil prices. It is the price of wholesale gasoline that has declined in recent days, not the price of crude oil.
"It's taking a lot of money out of my pocket," said Lev, a Hot Wheels marketing manager. "I make a nice living, but for most working people this is a real hit."
In recent days, Lev and other Californians have been paying close to last year's peak, when per-gallon pump prices stayed above $2 for 13 weeks. The advice from market watchers: Get used to it.
"You're in a permanent trend toward higher and higher highs -- and higher lows," said Tom Kloza, an analyst with the Oil Price Information Service, which tracks oil and gas prices. "At some point, you can't call it a spike."
In the last week, the price of self-serve regular jumped more than 20 cents to an average of $2.152 per gallon in Los Angeles County, according to the Automobile Club of Southern California. That's not the record; according to Auto Club statistics, that was $2.18 a gallon, set in March 2003.
This year's increase -- 51 cents per gallon so far -- is being blamed on a spate of malfunctions that reduced gasoline output at several of the state's refineries. That gave a swift kick to prices that were already riding higher because of the escalating cost of crude oil, the base ingredient in gasoline.
Today's gasoline supply troubles have spread to diesel and jet fuel because both are produced for California by 13 overextended refineries. Jet fuel price hikes are being passed on in the form of costlier airline tickets and higher air freight fees, while the rising cost of diesel affects farmers and companies whose products are hauled in semitrailers and trains.
"Transportation is such a fundamental thing, it can cut into lots of activities," said Joe Hurd, senior economist at the UCLA Anderson Forecast.
At Downey Plumbing, Heating & Air Conditioning, which had been spending about $3,000 a month on gas for a fleet of two trucks and eight vans, General manager Joe Keays figures the bill could increase by 20%, or $600.
In a highly competitive market, Keays said, raising his prices wasn't an option. "How do we offset that? We just have to batten down the hatches and find other ways to cover those costs."
