---

Northern California Gas Prices Edge Lower, says AAA

25 August 1999

Northern California Gas Prices Edge Lower, says AAA; Prices Down a Few Cents From Record Highs

    SAN FRANCISCO--Aug. 24, 1999--After smashing record highs this year, Northern California gas prices are beginning to inch downward, AAA reported today.
    In Northern California cities, a self-serve gallon of regular unleaded gasoline has dipped 1-5 cents in the past two weeks. The Northern California average of $1.65 is 39 cents higher than the national average, according to AAA.
    "Consumers are not grateful for penny-by-penny relief after watching gas prices soar more than 50 cents this year," said Paul Moreno, spokesman for AAA of Northern California. "The days of 99-cent pump prices are only a memory for California, although still a common sight in Georgia."
    The nine-county Bay Area average is $1.66. In Los Angeles, gas prices average $1.48. The Southern California average is $1.51, according to AAA.
    As recently as February, Northern California gas prices were at a seven-year low of $1.14, and in many communities regular unleaded gasoline could be bought for under a dollar. But prices began a rapid ascent after fires at California refineries led to tight supplies and market speculation.
    In April, crude oil prices started to rise after OPEC-member nations agreed to cut back oil production to boost world oil prices. Strong demand from summer driving and a robust economy provided the third upward push on prices, say analysts.
    But recently, California gasoline production has returned to normal or near-normal levels. Despite a drop in wholesale prices, retail gas prices have barely moved. One analyst said this is typical following a rapid wholesale price climb.
    "A lot of the dealers' margins are widening," said Alan Kovski, an energy analyst with the Kiplinger Washington Letter. "Now they are compensating for having seen margins narrow on the wholesale price upswing."
    Below are today's city averages in Northern California. On Aug. 10, AAA did a special survey measuring only select cities. In parenthesis are the changes for those select cities:

--        Chico, $1.59 (down a nickel in two weeks)      
--        Concord, $1.57                                 
--        Eureka, $1.79 (down 2 cents)                   
--        Fresno, $1.57 (down 3 cents)                   
--        Lake Tahoe, $1.75                              
--        Modesto, $1.53                                 
--        Monterey, $1.66 (unchanged)                    
--        Oakland, $1.64 (unchanged)                     
--        Redding, $1.70                                 
--        Sacramento, $1.60 (down a penny)         
--        Salinas, $1.64                           
--        San Francisco, $1.74 (down a penny)      
--        San Jose, $1.66 (unchanged)              
--        San Mateo, $1.71                         
--        San Rafael, $1.67                        
--        Santa Cruz, $1.64                        
--        Santa Rosa, $1.66                        
--        Stockton, $1.57                          
-0-

    In Nevada, gas prices average $1.56. In two weeks, Reno prices are up 2 cents to an all-time high of $1.73. The Las Vegas average is unchanged at $1.44, according to AAA. In Utah, the Salt Lake City average of $1.39 is up 4 cents, breaking a record high set two weeks ago. The Utah average is also $1.39, according to AAA's survey.
    Established nearly 100 years ago, AAA offers a wide array of automotive, travel, insurance and financial services. The California State Automobile Association serves nearly 4 million members and is the second largest regional affiliate of the national AAA organization.

    NOTE TO EDITORS: A chart showing 12 months of city averages is available.