Auto Club Sees More Room for Further Gas Price Declines

    LOS ANGELES--Aug. 3, 2001--For the 10th consecutive week, the average price for a gallon of regular unleaded self-serve gasoline declined in Southern California, according to the Automobile Club of Southern California's Weekend Gas Watch.
    Price declines were as small as 4.7 cents per gallon in the Central Coast to as high as 6 cents per gallon in the Phoenix reporting area. The Weekend Gas Watch monitors the average price of gasoline at popular destinations for motoring trips.
    Independent membership retailers, such as Costco, have been selling gasoline at substantially lower prices than major gasoline retailers. Typically, independents can buy at a much lower wholesale price than the name-brand retailers can. The price advantage then allows the independent retailers to offer lower-priced gasoline to members as a way of enhancing membership value.
    "Costco and the others are filling a competitive void left as many independent wholesalers and retailers have been forced out of the market," said Auto Club spokesperson Jeffrey Spring. "As more of these membership stores sell gas, traditional retailers will continue to feel the impact of competition and may continue to lower their own prices in turn.
    "Declining demand over the past few weeks also has increased competition for consumers and helped to lower prices. Oil companies are trying to reduce supplies to meet demand and prevent further price spirals. It remains to be seen whether independents can continue to lure customers away from the major brands causing further price reductions."

Average prices as of 12:01 a.m. Aug. 3.

Area                             Regular Change from  Record Price
                                          last week

Los Angeles-Long Beach           $1.707  -5.8 cents   $2.036 (set 5/25)

San Diego                        $1.786  -5.5 cents   $2.025 (5/29)

Santa Barbara-Santa Maria-Lompoc $1.802  -4.7 cents   $2.069 (5/16)

Las Vegas                        $1.455  -5.4 cents   $1.885 (3/27/00)

Phoenix-Mesa                     $1.402  -6.0 cents   $1.720 (5/30)