Gasoline prices have quietly risen more than 25 cents a gallon in El Paso since Jan. 2, according to AAA, causing consumers and small-business owners to worry.
For a motorist with a 15-gallon tank, that means it now costs $3.855 more to fill up than just 2 1/2 weeks ago.
El Paso's average price for a gallon of unleaded regular gas rose 1 1/2 cents overnight and hit $1.776 Monday.
From Sept. 17 through Jan. 2, El Paso had seen its average price fall $2.173, from $3.692 to $1.519.
University of Texas at El Paso finance Professor Oscar Varela said the recent run-up in gasoline prices is starting to look like a trend.
"It does impact a person's pocketbook," Varela said. "But keep in mind that gas was nearly $4 a gallon a few months ago, so this is still a reasonable price compared to what it was."
Varela speculated that an "extraordinarily cold winter across much of the country" was driving up demand for fuel and was helping to boost the price of gasoline.
Canutillo resident Samuel Salinas, who drives a Toyota Corolla, said the increase in gas prices "isn't that bad, but you have to spend more money on your car."
He said he's cut back on his spending in other areas to pay for gasoline.
Gasoline prices continue to rise even though crude oil prices fell below $35 a barrel Monday. Light, sweet crude for February delivery was down $1.88 to $34.63 a barrel, according to The Associated Press.
Concerns that a global recession is worse than previously expected has sent crude prices down about 30 percent from $50.47 earlier this month and down about 75 percent from $147.27 in July.
"Even if we see an economic recovery later in the year, I don't think oil is going to rebound very quickly because the degree of excess capacity is quite big," said Richard Urwin, who helps to manage $10 billion of investments for BlackRock in London.
The Organization of Petroleum Exporting Countries announced output cuts of 4.2 million barrels a day since September.
"The OPEC cuts aren't going to offset demand weakness," Urwin said.
However, Xavier Escobedo, owner of Veranda Flowers, Wines & Events on the West Side, said he's getting worried that the recent spike in gasoline prices might just be the beginning.
"First, when it went down (this fall), it was a relief, because we do a lot of deliveries and we didn't have to spend a lot of money" on gas, he said. "But I'm getting worried again that gas prices will go sky-high again and cause more instability for consumers and businesses.
"What bothers me is everything has gone up in price since gas prices went up last summer. Our vendors started charging a fuel surcharge to compensate, but when gas prices went down, they're still charging that."
David Burge may be reached at dburge@elpasotimes.com; 546-6126.
