Elaine Thompson / Associated Press

Vu To fills up Tuesday in Bellevue, Wash. American incomes rose in March, but most of that gain was lost to the rising cost of gas.

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Californians bought more gas in January, but recent price spike could change that

Published: Saturday, Apr. 30, 2011 - 12:00 am | Page 6B

Until the recent run-up in prices, at least, Californians were starting to use more gasoline.

Gasoline use statewide, which had been flat for months, jumped 2.7 percent in January compared with January 2010, according to statistics released Friday by the state Board of Equalization.

That was the sharpest year-over-year increase in more than two years. Diesel fuel consumption likewise rose in January – up 1.4 percent compared with the year-ago period.

"Increased fuel use signals California's economic recovery is under way," said BOE board member George Runner. "But rising prices at the pump threaten to slow that recovery."

The BOE said Californians used more than 1.2 billion gallons of gasoline in January, compared with about 1.17 billion gallons the same month last year, despite the fact that the average price of gas statewide rose to $3.39 a gallon – 32 cents higher than the average price in January 2010.

Diesel sold in California in January totaled more than 191 million gallons, up from about 189 million gallons in January 2010. Diesel was going for $3.56 a gallon statewide in January, up from $3 a gallon in the year-ago period.

Diesel, commonly used by the commercial trucking industry, has long been an indicator of economic health.

The unknown factor is how much gas-buying momentum within California has been maintained, or lost, since January, whose average statewide price of $3.39 a gallon seems like a bargain now.

GasBuddy.com said the average price in California on Friday was $4.22 a gallon. AAA had unleaded regular at $4.23 statewide.

Like Runner, BOE Chairman Jerome Horton was concerned that sharply rising gas prices since January might have stalled consumption.

"While gasoline consumption is up slightly, high prices are really hurting a lot of Californians," Horton said. "Every day, Californians see high gasoline prices, which take a huge chunk out of their household budget. This is especially difficult for those who are not able to buy a fuel-efficient vehicle and have to commute long distances to get to work."

Runner, a Republican who served 12 years in the state Legislature before being elected to the five-member BOE board last year, has been an advocate of bolstering domestic oil production.

© Copyright The Sacramento Bee. All rights reserved.


Call The Bee's Mark Glover, (916) 321-1184.

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