Gas price highest in lower 48

North Coast pays 50 cents more than national average

We’re No. 1, but we definitely don’t want to be.

The North Coast now boasts the highest gas prices in the lower 48 states, according to figures released this week by AAA, which awarded the Eureka area this dubious title.

Gas in Del Norte is typically pricier than in Humboldt County, since diesel-guzzling trucks must haul each 8,500-gallon load from the Eureka Chevron terminal.

But as of Friday, gas prices in Crescent City and Eureka were the same at non-tribal stations — between $3.88 and $3.94 per gallon. That’s 50 cents higher than the national average, according to the latest data from the California Energy Commission.

Diesel along the North Coast was at $4.30 per gallon on Friday. 

We’re all in the same expensive boat. Why?

There’s a list of usual suspects: transportation costs, state environmental standards, fuel taxes and limited local competition, for starters.

Chris Renner, owner of Renner Petroleum and the Patriot stations in Crescent City, attributed the latest ups, downs and way ups in price to big oil companies, who sell to the highest bidders worldwide and drive up domestic pricing.

Competition is king right here at home too.

“My competitor can come out and see the sign out on the street and say, ‘Oh we better drop the price,’” Renner said. “We’ve been known to sell gas for less than our cost is.”

Tribal stations consistently offer the cheapest prices because the fuel they sell doesn’t have to meet certain environmental standards required at other pumps in California, Renner said.

Lucky 7 Fuel Mart in Smith River was selling gas at $3.84 per gallon and diesel at $4 per gallon as of Friday.

Oregon gas isn’t subject to the same environmental requirements, so gas from that state is cheaper to import, even though you can’t sell it at most stations in California.

While Renner Petroleum gets much of its gas at the Eureka terminal, they go to Eugene, Ore., for fuel distributed to tribal stations.

Taxes also contribute to consumer pricing. In California an average of 67 cents per gallon is levied in federal, state and local taxes, well above the national average of 48.8 cents per gallon, according to the American Petroleum Institute.

Our diesel is taxed an average of 75.9 cents per gallon; the national average is 54 cents.

While Oregon has no sales tax, it levies 49.5 cents per gallon in other fuel taxes.

Fred Meyers’ station in Brookings had gas for $3.39 per gallon as of Friday.

One fisherman grumbling at the Chevron pump on 101 S. in Crescent City Thursday said he goes to Brookings for gas at least once a month.

More residents are now riding the bus, a system largely subsidized with sales taxes.

In 2008, Redwood Coast Transit expanded its coverage of Crescent City to four regular lines. In 2011 riders increased by 55 percent in a single year, from 16,600 boardings to 25,700, said Redwood Coast Transit Manager Mark Wall.

RCT budgeted $180,000 for fuel this year, but new projections put the final tab at $237,000.

“That will put us $57,000 over budget if we don’t do something else,” Wall said.

That something else will likely mean cutting back on advertising, streamlining a flex-stop route to Hiouchi and scaling back on shelter improvements, but not raising individual fares, Wall said.

And while “recent tensions between Iran and the U.S. in the Persian Gulf” may drive gas prices upwards even more in the coming months, according to AAA analysts, local bus fare is likely to stay under $1.

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