Demand For Gas Down Locally As Prices Rise Near Historic Levels

LOS ANGELES (CBS) — Gas prices have risen to historically high levels since the beginning of September, analysts say.

The demand for gas is down locally, but experts say that a growing global demand and rising U.S. fuel exports are leading to the increase at the pump.

“This is all about world demand, particularly in the southern hemisphere in South America where we have been sending a lot of products and the appetite for fuel is really rising significantly,” said Tom Kloza, chief oil analyst for the Oil Price Information Service.

KNX 1070’s Jon Baird reports.

According to AAA of Southern California, the average price for a gallon of regular unleaded gas in November is already $3.87, compared to $3.82 last month.

In Nov. 2010, the average price for a gallon of regular unleaded gas was $3.12.

“Its going to be difficult, but you know, its one of those prices you gotta pay . . . what are you going to do? You have to buy gas to get around,” said motorist Orestes Lorandos.

Analysts say the price of gas in California could rise to $4.50 a gallon by Easter 2012.

Americans are on pace to spend $489.7 billion on gas in 2011, according to Kloza.

To find the cheapest gas in your area, log onto

  • mtv

    So why are the stupid oil companies EXPORTING fuel instead of keeping it here as it should be ……… hungry companies and our government seriously needs to get involved in this BS.

  • Robert S.

    Where has protection of the consumer gone?…….South! A weak administration could be a large part of the problem, and a correction may be on the way if the public “wakes-up!” Corporations know when to take advantage of the situations when thing are in a “confused state!” Here we goe again on a big “Milken!” Whre is all that alternative “energy!” Its gone south too!

  • Robert S.

    How can we have “economic recovery” if we cant control corporations, and their “wild” prices. We need new laws, rules, and regulations, because “free enterprize has taken a “greedy” turn. This is abuse of the “free enterprize system”, and it is holding back people being able to “get ahead”, and does kill the economey. Heard an “economist” back in the day, say that the reason that “They” would force the economy “down”, is so they could bring it back later(build it), to show a surge! I don’t know that could be true, but if you “bring it down”, then Iguess you can build it back up at a later date! Makes no sense! By the way, Lyndon L. is gone anyway.

  • TT

    what do you want to bet they show a ridiculous profit next quarter …and still jack prices up,and blame it on something overseas, and I hope the oil companies dont actually believe that we believe.. everything they tell us about what is going on, because we dont, they create hype – then expect us to believe every word, not so fast…….We have our OWN oil…….theres needs to be ALOT more transparency in regard to these prices….and why they arent regulated at a reasonable level

  • Jan

    Globalisation is so good ! Soon the whole world is a third world.

  • umm umm good

    Aaah why worry? You know all ceo’s need a raise! They learn from the best; our government has bees sc*ewing us since they learned how far we would bend over.

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