Pain at the Pump: Gas prices continue to climb

Herald/Review

Published on Friday, February 18, 2011

Antonio Brown fills the gas tank of his SUV on Thrusday at Gas City. With rising cost of gas prices Brown paid over $75.00 for a full tank.

SIERRA VISTA —  For the 10th consecutive week, the average cost of gasoline has increased in Cochise County, while the state average reached its highest in more than two years, making a dent in both consumers' wallets and in businesses' bottom line.

In its most recent biweekly study of area gas prices, the Center for Economic Research at Cochise College determined the average cost of regular unleded gas in the county climbed 15 cents, up to $3.15 a gallon the second week of February.

Prices increased the most in Douglas and Bisbee, which each saw an 18-cent increase since the previous survey, according to the CER.  The smallest  increase occurred in Willcox, at 11 cents.

At the time of the study, the county average was slightly ahead of both the state and national average, based on figures provided by AAA and the Energy Information Administration.

Concumers are likely to take note of the extra cash it takes to fill up the tank, said Robert Carreira, director of the Center for Economic Research.

"They start thinking about how they're going to budget for that, and start cutting back on other expenses," like eating out or going to movies, Carreira said.

Danielle Smith, owner of Huachuca Shuttle and Taxie, said her business has been feeling the pinch caused by rising gas prices for weeks.

"Ever since it hit $3 mark," Smith said.

As a result, she said she has had to suspend discount programs for military and law wnforcement personnel, even though they make up two-thirds of her clientele.

"Unfortunately, with rising gas prices, we're not able to offer that at this time," she said.

  Changes have also been made to the vehicle fleet.

"We're using the smaller cars more often.  Usually, we send out the mini-van on the weekends, but now we're sending out the sedans, because they're better with gas," she said.

The roofing company that Antonio Brown works for, Custom Engineered Coating, can take him to jobs all over the state, he said.  With the cost to fill up his SUB - which is used both for work and personal transportation - now approaching $90, the reimbursements offered by his employer cover less and less of the bill.

"It gets pretty expensive," Brown said.

Higher gas prices, he said, have resulted in having to make payment installments on bills, as opposed to paying the entire balance.

"Prices have risen about 10 cents over the last week, which is not typical for this time of year." said Linda Gorman, director of public affairs for AAA Arizona.

Thursday's statewide average price of gasoline was $3.186 per gallon.

Maintenance issues with fuel refineries around the country, particularly in the Gulf Coast, as well as the current political turmoil in the Middle East, have contributed to these unseasonably high prices, Gorman said.

Prices are likely to get worse long before they get better.

"Prices will definitely increase, that isn't speculation.  We've still got the busiest travel months ahead of us," she said.  "We could be in for a long summer."