Fuel Prices

Gasoline prices in California are dribbling lower, with the average price slipping as much as a penny a day from record highs reached last week, fuel surveys show. "It's all rigged. They've got us over a barrel, literally," grumbled restaurant manager Jay Moss, who paid $4.99 a gallon Sunday at a Mobil station in Santa Monica. "It's down a little, but not much. I'm just tired of looking. " Although the slow pace of relief might be annoying to drivers, it's a familiar pattern to energy economists.

The worst-ever one-week spike for California gasoline may be over, for now. Prices dropped by an average of 0.5 cents a gallon overnight, to the still stunning level of $4.666. A week ago, the average price for a gallon of regular gasoline was $4.232. That was already a record for the day, according to the AAA Fuel Gauge Report, which tracks prices from the Oil Price Information Service (OPIS) from more than 100,000 retail outlets. Then things went "apoplectic," in the words of Tom Kloza, chief oil analyst for OPIS.

As California gasoline prices set fresh records daily, consumer advocates are gearing up to fight the sale of the low-cost Arco brand and its Carson refinery to a Texas company not known for its cheap fuel. Some experts are calling the proposed $2.5-billion sale to Tesoro Corp. of San Antonio the biggest shift in California's petroleum business in decades. Activists say the deal, announced in August, would reduce competition and possibly raise prices for motorists, and they will ask state and federal regulators to reject it. The transaction is drawing fire now - with California's average gasoline price at a record $4.671 a gallon Tuesday, according to AAA - because it would leave 51% of the state's refining capacity in the hands of just two companies: Tesoro and Chevron Corp.

Profits for the nation's largest airlines are on the rise thanks to lower fuel prices, steady demand and growing revenue from passenger fees, according to a government report. From April to June, the profit margin for the nation's nine largest airlines rose to 6% from 5.3% in the same period in 2011, according to a report Tuesday by the U.S. Bureau of Transportation Statistics. But industry leaders point out that the improved finances won't offset losses from the first quarter.

Wholesale prices jumped 1.7% in August from July -- their largest gain since June 2009 -- as the cost of food and energy boomed. The seasonally adjusted increase in the producer price index was driven mostly by a 6.4% surge in energy prices, according to the Labor Department. That's the most substantial leap in three years. Gasoline prices swelled 13.6% in August, according to the measure. Another report earlier this week found gasoline prices ticking up nationwide and remaining above $4 a gallon in California . After a summer scorched by drought, food costs rose 0.9% in their third straight month of escalation, marking the largest increase in nine months, according to the government report.

Nationwide fuel prices are continuing to tick up slightly, rising to $3.828 Monday from $3.827 a week ago for a tank of regular gas. A month ago, the average price for a gallon of regular gasoline was $3.685; a year ago the price was $3.66, according to the AAA Fuel Gauge. The measure draws data from credit-card receipts from more than 100,000 U.S. retail outlets.  In California, drivers are still spending more than $4 a gallon. Statewide, a gallon of regular cost $4.167, up from $4.164 a week ago and $4.044 a month earlier.

The rapid rise in gasoline prices, sparked by a refinery fire last week, has slowed and may have peaked, according to the Automobile Club of Southern California. Since the fire at Chevron Corp.'s Richmond Refinery in the Bay Area on Aug. 6, the average retail price of a gallon of regular gasoline in California has shot up 25.8 cents. At one point, it jumped 5 cents overnight. Although part of the refinery damaged by the fire is still shut down, the rise in prices has cooled. "Southern California gas prices have actually only risen by about 2 cents since Sunday, and most of the week-to-week increase occurred last Friday and Saturday," Auto Club spokesman Jeffrey Spring said.

The average retail price for a gallon of regular gasoline in California climbed an additional 5.9 cents overnight to $3.986, according to the AAA Fuel Gauge Report. The state's average is almost certain to cross the $4-a-gallon mark sometime over the weekend. The California average has climbed 11.1 cents in just the past two days, and some parts of the state are already averaging more than $4 a gallon. San Francisco gas prices crossed that threshold Thursday and rose to $4.066 a gallon Friday.

Gasoline consumption in California fell in April as the state's motorists felt the pinch of high fuel prices, the California State Board of Equalization said. The $4.245 average price for a gallon of regular gasoline in April was a record high for the month, according to the Energy Department statistics. In response, "Californians continue altering their driving habits,” said California Board of Equalization Chairman Jerome E. Horton, adding that the amount of the drop was "in line with similar declines during the past 12 months.” Gasoline consumption in California in April was 1.18 billion gallons, down 1.7% from the 1.2 billion gallons consumed in April 2011.

Fuel surcharges - those fees that airlines say they add to ticket prices to compensate for higher fuel costs - have increased twice as fast as fuel prices in the last year, according to a new study. What's more, most airlines have not reduced fuel surcharges since 2009, despite drops in fuel prices over that time, according to the study by corporate travel management company Carson Wagonlit Travel. Fuel surcharges can represent an increase of as much as 50% on ticket prices, depending on the airline and the destination.