Gas Prices Continue to Rise Despite Less Demand

If you feel like gasoline prices are rising on a daily basis, there's a good reason.

They are.

The California State Automobile Association released its monthly gas price survey today.

It shows the average price for a gallon of unleaded regular in Northern California has risen to $4.17, a 27 cent leap from a month ago.

In the East Bay, the average price has jumped to $4.24, a 28 cent hike from a month ago. That's also a 16 cent increase from one week ago... an average of more than two cents a day.

In Hercules, a gallon of unleaded regular at the Hercules Shell on San Pablo Avenue cost $4.21 on Tuesday. At the 76 on Willow Avenue, the price was $4.17 per gallon.

A year ago, the average price in the East Bay was $3.10. That's $1.14 less than it now costs.

The rise has occurred despite the fact the demand for gasoline has decreased across the United States the past couple weeks.

Officials at Triple A say the weak U. S. dollar as well as unrest in Libya, Syria, Yemen and other Middle East countries is helping fuel the rise.

However, they say the biggest cause is speculators on the commodities market.

"Investors continue to be the largest force driving the market price for oil," said Matt Skryja, an AAA Northern California spokesman. "Instability in the Middle East and North Africa still has them concerned about the world's supply of crude, which has helped keep oil prices on the rise."

Jay McKeeman, the vice president of government relations for the California Independent Oil Marketers Association, agrees.

He also blames speculators for the high price of gasoline.

"It's all because of the price of crude. As crude prices rise, the price of gas rises," McKeeman said.

Patch.com has put in two calls to the media department at Chevron Corporation, but so far they have not returned those calls for comment.