Falling prices aren’t all a gas

Deepa Bharath

NEWPORT-MESA -- Plummeting gas prices may be turning scowls to smiles

at pumps across the state, but in Newport-Mesa those smiles are still

shadowed by past frustrations, unpredictability and uncertainty.

Consumers and gas station owners alike say they are still puzzled at

the capricious nature of gas prices in the Golden State.

Costa Mesa resident Larry Melton says he is not thrilled or ecstatic

yet.

“I still think it’s a rip-off,” he said. “I drive more than 50,000

miles a year, and I feel the pinch.”

Melton said he spent more than $300 a month last year and about $450

this year.

“My expenses have been doubling because of this,” he said. “It’s

leaving people flat. I won’t be happy till it gets to $1 a gallon like it

was before. Maybe then I’ll smile.”

Melton’s utopian pump vision still seemed blurry on a day when the

average gas price in Orange County was listed at $1.65 for regular unleaded gasoline -- still 6 cents more than the average price at the

same time last year.

Across the state, the average price is $1.56, its lowest point in more

than a year and a half. The national average is even lower: $1.39.

But those declining numbers don’t forestall the uncertainty about when

the trend might end, said Paul Gonzales, spokesman for the Auto Club of

Southern California.

“The reason why prices are going down now is because of burgeoning

supply and falling demand,” he explained. “But there’s no telling when

that’ll change.”

Gonzales also pointed out that this year, the rise and fall of gas

prices has been far more dramatic than in 2000.

“They climbed up to $2 in no time but have also been falling rapidly,”

he said.

Moe Baghai, manager of Newport Beach Chevron on Bristol Street, said

the lower prices are giving him a break from angry customers taking it

out on him.

“They think I’m the one that’s raising the prices,” he said. “They

don’t understand it’s the wholesalers who I buy from that determine the

prices.”

Baghai said his sentiments are not much different from those of a

consumer and that he struggles to understand the market himself.

“I have no idea why prices go up or come down,” he said. “Seems like

they shouldn’t. There seems to be enough supply of gasoline.”

He said state legislators should also look at why gasoline priced at

$1.51 in Costa Mesa is priced at $1.65 in Newport Beach.

“Is it because people are paying more rent and live in more expensive

homes?” Baghai asked. “That seems just so strange to me.”

But, he added, his customers are happy with the current price

decrease.

“There are a lot of big vehicles like SUVs around here in this

neighborhood,” Baghai said. “So it helps everybody’s budget.”

* Deepa Bharath covers public safety and courts. She may be reached at

(949) 574-4226 or by e-mail at o7 deepa.bharath@latimes.comf7 .