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Gas Prices Drop Again, says AAA of Northern California

17 May 2000

Gas Prices Drop Again, says AAA of Northern California But Summer Driving Season Will Soon Push Prices Back Up

    SAN FRANCISCO--May 16, 2000--Gasoline prices continue to fall in Northern California, but the relief will be short lived, AAA reported today.
    In just four weeks, gas prices have fallen 8 cents in Northern California -- the sharpest one-month drop since last September, according to AAA's monthly Fuel Gauge Survey.
    "Gasoline prices are down from their all-time highs set in March," said Paul Moreno, spokesman for AAA of Northern California. "But a recent surge in crude prices and a busy summer driving season will soon reverse the downward trend."
    The average price of regular self-serve unleaded gas in Northern California is $1.73, with the nine-county Bay Area average at $1.78, according to AAA.
    Nationwide, prices average $1.49. The Los Angeles average price is $1.63, while prices average $1.65 in Bakersfield, AAA's survey shows.
    Crude oil prices are hovering around $30 a barrel, up about $5 a barrel since mid-April. Crude prices have risen as OPEC members hinted the cartel would not agree to increase production at the June 21 meeting in Vienna.
    Demand for gasoline should be strong as a AAA travel survey shows a busy summer vacation season thanks to a strong economy and low unemployment for the fourth straight year.
    "Over the next month or two, gasoline prices should be going up," said Alan Kovski, energy analyst with the Kiplinger Letter In Washington, D.C. "With luck, crude and fuel prices should start going down around late July or early August."
    The following are today's city averages in Northern California, with the change since April 18 reflected in parentheses.

-- Chico,         $1.58 (down 7 cents)  
-- Concord,       $1.67 (down 9 cents)  
-- Eureka,        $1.87 (up 2 cents)     
-- Fresno,        $1.59 (down 12 cents) 
-- Lake Tahoe     $1.69 (down 3 cents)  
-- Modesto,       $1.59 (down 11 cents) 
-- Monterey,      $1.73 (down 11 cents) 
-- Oakland,       $1.79 (down 7 cents)  
-- Redding,       $1.67 (down 9 cents)  
-- Sacramento,    $1.68 (down a dime)    
-- Salinas,       $1.66 (down 11 cents)     
-- San Francisco, $1.86 (down 6 cents)
-- San Jose,      $1.79 (down 6 cents)     
-- San Mateo,     $1.84 (down 7 cents)    
-- San Rafael,    $1.80 (down a nickel)  
-- Santa Cruz,    $1.75 (down 9 cents)   
-- Santa Rosa,    $1.72 (down 6 cents)   
-- Stockton,      $1.70 (down 7 cents)     

    In Nevada, the average price of gas is $1.70, down a dime in four weeks. In Utah, the state average is $1.49, down 8 cents in the same period, according to AAA.