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Gas Prices Drop 4 Cents, 11 Cents Higher Than Last December, Says AAA

19 December 1997

Gas Prices Drop 4 Cents, 11 Cents Higher Than Last December, Says AAA

    SAN FRANCISCO, Dec. 19 -- Holiday travelers will receive
lower gas prices at Northern California pumps, a AAA of Northern California
survey reported today.
    "The 4-cent drop from mid-November is due to stable crude oil prices and
lower seasonal demand," said AAA spokesman Vernon C. Thompson.
"Retail gasoline averaged $1.39 a gallon for regular unleaded self-serve in
Northern California. This is 11 cents higher than one year ago."
    This is the second consecutive monthly drop, with prices expected to drop
in winter, said Alan Kovski of "The Oil Daily," an industry newsletter.
    The 11-cent difference between California's low prices of last December
and this month can be partly explained by gas price wars which occurred late
last year, according to Kovski.
    Crude oil prices have stabilized to just above $18 a barrel, due to
reduced tensions in the Middle East and OPEC member countries agreeing
to production increases, according to Kovski.
    "Despite the price drop, Northern California prices are 17 cents higher
than the U.S. average," said AAA's Thompson. "Only Hawaii has a higher state
average."
    This is Northern California's highest price for the month of December in
seven years, when gasoline averaged $1.45 a gallon during the Gulf War,
according to AAA surveys.
    In Northern California, December city averages for regular unleaded
self-serve gasoline are: Chico, $1.31 (down 7 cents); Concord, $1.34 (down
3 cents); Eureka, $1.44 (down 9 cents); Fresno, $1.31 (down 3 cents); Lake
Tahoe, $1.32 (down 8 cents); Monterey, $1.44 (down 1 cent); Oakland,
$1.39 (down 2 cents); Redding, $1.38 (down 6 cents); Sacramento, $1.38 (down
3 cents); San Francisco, $1.47 (down 4 cents); San Jose, $1.42 (down 4 cents);
San Mateo, $1.47 (down 1 cent); San Rafael, $1.43 (down 6 cents); Santa Cruz,
$1.43 (down 2 cents); Santa Rosa, $1.36 (down 4 cents); and Stockton,
$1.35 (down 4 cents).
    Since mid-November, gas prices in Nevada are down 3 cents a gallon to
$1.38, while prices in Utah fell a penny a gallon to $1.29, according to AAA's
monthly survey of more than 350 gasoline stations in Northern California,
Nevada and Utah.
    The AAA affiliate for Northern California, Nevada and Utah serves nearly
four million members with an array of automotive, travel and insurance
services.

SOURCE  AAA