Motorists facing steep hike in gasoline prices

Chicago area motorists face sharply rising gasoline costs asAmoco increases prices today for the third time in 10 days.

Amoco's 3-cent-a-gallon price increase follows increasestotaling 5 cents a gallon that have been imposed by the company sinceMarch 23.

Some other dealers are following Amoco's lead, said SteveDaggers of the AAA-Chicago Motor Club. He said area service stationsare increasing prices earlier than usual for the warm weather travelseason.

"It's seasonal that prices go up in the spring," Daggers said."(But) I can't remember them going up this early."

Amoco notified its dealers of the price increase Mondayafternoon, said Neil Geary, a spokesman for Chicago-based Amoco Corp. Several dealers who were contacted said the latest increase willraise pump prices by another 3 cents a gallon. Prices vary fromstation to station, ranging Monday from $1.27 a gallon at a stationat LaSalle and North Avenue, to $1.12 at 3845 Harlem Ave., Berwyn.

Amoco controls 25 percent of the gasoline market in NorthernIllinois and Indiana through its operation of 600 gasoline stations.

The price increase angered and disturbed some Chicagoans.

"It's not fair," said Wilfredo Negron, 23, who lives onChicago's North Side.

Negron, who works downtown as a security guard, said he doesn'tdrive to the Loop because it's too expensive. He said gas prices arehigh enough and the major gas companies make "enough profits."

Martha Rae said she is disturbed by the increase because she isan Amoco customer.

But the Northwest Side woman said there is little anyone can do.

"I'm pretty much numb to it," said Rae, 31. "On this issue youbite the bullet."

The increase is the third within 10 days, Geary said. Amocodealers increased prices 3 cents a gallon March 23 and another 2cents a gallon March 28.

Geary declined to say how much dealers have been ordered toraise their prices.

Daggers said the price increase is especially surprising becausewholesale oil prices were down in February, and through most of Marchit appeared that prices would remain stable.

Geary said Amoco is increasing prices because wholesalepetroleum prices have increased.

Also, Geary said gasoline stockpiles are low at refineriesbecause the plants spent January, February and March manufacturinghome heating oil.

He added that part of the price increase results from the costof producing cleaner gasoline to meet federal and state emissionsguidelines. The new fuel reflects the price difference.

Contributing: Lou Ortiz.