GAS PRICES CLIMBING

Motorists are facing an economic pinch at the pump as fuel prices continue to climb near the dollar mark for regular unleaded gasoline.

The increase follows an agreement among the world's top oil producers to curtail production and end a global oil glut.

However, some motorists view the rapid price increase with suspicion and question the timing of the sudden rise.

"I can't understand why one minute I'm paying less than 80 cents for fuel and the next I'm paying almost a dollar," said Tina Harris at a station near Interstate 55 in Cape Girardeau.

According to figures from the American Automobile Association, the average cost of regular unleaded gasoline on March 5 in St. Louis was 77.8 cents per gallon -- a low for 1999.

On Wednesday, just 19 days later, the St. Louis price was 93.1 cents per gallon, an increase of 15.3 cents per gallon in less than three weeks.

"For every $1 increase in a barrel of oil, the price at the pump should increase approximately 2.5 cents," said James Williams, an energy consultant and petroleum analyst based in Arkansas.

Since the announcement to cut production was made nearly two weeks ago, the cost of a barrel of oil has risen approximately $3. Using this figure and St. Louis gasoline rates for March, the current price for gasoline should be averaged at or near 85.3 cents per gallon instead of the current 93.1 cents.

But experts are quick to note that many factors are involved in determining the local price at the pump. "Price discrepancy is a local market variance set by local and regional factors," stated Williams.

"Convenience markets often sell at a lower price because they are trying to get you into the store, and you now see the major companies getting into this because the markup on gas is not that much," Williams said.

Major companies such as Citgo and Amoco can often demand a premium price because of consumer brand loyalty, credit card convenience and expanded service.

"Sometimes the only difference in the actual gasoline is the color and additives added to it," stated Williams. "Two separate gasoline stations can very well be selling gas from the same refinery."

Mike Right of AAA in St. Louis said the price of gasoline is increasing because of the decision to reduce output.

"We saw similar pronouncements last year, but we had an oversupply and not much happened," said Right.

"But this year is different because the low price has remained and reduction will really happen."

As the demand for gasoline increases and the world oil glut is drained, consumers can expect higher prices at the pump.

"And when the price goes up, it goes up quick," Williams said.