Gas Prices Up Slightly in Northern California, says AAA

15 December 1999

Gas Prices Up Slightly in Northern California, says AAA; Pump Prices Rise a Penny in One Month, 29 Cents in One Year

    SAN FRANCISCO--Dec. 14, 1999--Northern California gas prices rose a penny in one month, AAA reported today.
    "Gasoline prices ended a three-month slide as higher oil prices overcame lower seasonal demand," said Paul Moreno, spokesman for AAA of Northern California. "Pump prices are 29 cents higher now than this time last year."
    The Northern California average is $1.45 for a gallon of self-serve regular unleaded, according to AAA's monthly gas price survey. The nine-county Bay Area average is $1.47, up 2 cents in the same period.
    Nationwide, prices are up 3 cents a gallon to $1.31, according to AAA.
    While oil prices are up sharply from the start of the year, crude prices have seesawed in recent weeks. Analysts say oil traders reacted to global oil inventory reports and Iraq's dispute with the United Nations over the oil-for-food program. Iraq announced on Monday that it would resume oil exports.
    Earlier this year, the Organization of Petroleum Exporting Countries and a few non-OPEC nations pledged to reign in crude production in a successful effort to reduce the global oil glut. The oversupply caused oil prices to plummet throughout 1998, but cutbacks have since sent crude prices higher.
    One analyst said shrinking worldwide crude inventories will spur volatility in oil prices, at least until OPEC signals what it will do after current production quotas expire next March.
    "There will be uncertainty in the oil market this winter," said Alan Kovski of the Kiplinger Washington Letter. "But OPEC doesn't want to alienate its customers too much by keeping prices too high for too long."
    Below are today's city averages in Northern California, with the price change since Nov. 16 in parentheses.



--   Chico, $1.33 (up a penny)
--   Concord, $1.38 (up 2 cents)
--   Eureka, $1.53 (unchanged)
--   Fresno, $1.40 (up 2 cents)
--   Lake Tahoe, $1.56 (unchanged)
--   Modesto, $1.34 (up a penny)
--   Monterey, $1.44 (up a penny)
--   Oakland, $1.48 (up a penny)
--   Redding, $1.42 (unchanged)
--   Sacramento, $1.36 (unchanged)
--   Salinas, $1.39 (unchanged)
--   San Francisco, $1.52 (up 1 cent)
--   San Jose, $1.45 (up a penny)
--   San Mateo, $1.50 (up 2 cents)
--   San Rafael, $1.45 (up a penny)
--   Santa Cruz, $1.48 (unchanged)
--   Santa Rosa, $1.44 (unchanged)
--   Stockton, $1.36 (unchanged)

    In Nevada, gas prices average $1.46, up 3 cents in four weeks. In Utah, the average of $1.34 is down a penny in a month, according to AAA.
    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. AAA will issue a December Holiday Travel Projections news release on Dec. 20.