Auto Club: Gasoline Prices Defy Projections and Continue Lower for the Ninth Week

LOS ANGELES--July 30, 2004--Despite projections that rising demand and limited supply would send gasoline prices higher through the latter part of July, prices at the pump continued lower last week for the ninth consecutive week, according to the Automobile Club of Southern California's Weekend Gas Watch. Lower than expected demand for gas is being credited with the continued downward price trend.

The average price of self-serve regular gasoline in the Los Angeles-Long Beach area is $2.170 a gallon, which is 2.6 cents lower than last week, 10 cents lower than last month and 49 cents higher than last year. In San Diego, the price is $2.182, which is 2.3 cents below last week, 7 cents lower than last month and 48 cents above last year. On the Central Coast, the average price is $2.331, which is down 2.9 cents from last week, 8 cents below last month and 55 cents higher than last year. In the Inland Empire, the average price is $2.183, which is down 2 cents from last week, 10 cents lower than last month and 51 cents higher than last year.

"Since the beginning of 2004, we've been talking about gasoline price spikes in the spring and late summer. We've seen the spring spike, but prices continue declining at a time when we expected them to rise," said Auto Club spokesperson Carol Thorp. "Demand for gasoline is only one-tenth of a percent higher than last year while gasoline supplies have been ample. Those factors are being credited for sending prices lower this summer."

The Weekend Gas Watch monitors the average price of gasoline as of 12:01 a.m., July 30.

Area                          Regular   Change from    Record Price
                                         last week

Los Angeles-Long Beach        $2.170    -2.6 cents  $2.368 (5/28/2004)

Orange County                 $2.145    -3.3 cents  $2.353 (6/01/2004)

San Diego                     $2.182    -2.3 cents  $2.373 (5/26/2004)

Santa Barbara-Santa Maria-
 Lompoc                       $2.331    -2.9 cents  $2.489 (5/29/2004)

Riverside-San Bernardino      $2.183    -2.0 cents  $2.399 (6/01/2004)

Bakersfield                   $2.200    -3.1 cents  $2.383 (6/01/2004)

Las Vegas                     $2.071    -2.9 cents  $2.279 (5/26/2004)