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Northern California Gas Prices Down 4 Cents

26 August 1998

Regional Gas Prices Down 4 Cents, Says AAA Prices at 3-year Summer Low

    SAN FRANCISCO--Aug. 25, 1998--Northern California gas prices have fallen 4 cents in one month, matching the lowest summer price in three years, AAA reported today.
    "Retail gasoline averages $1.23 a gallon for regular unleaded self-serve in Northern California," said AAA spokesman Paul Moreno. "Prices have not been this low in any summer month since August, 1995, when the regional average was also $1.23."
    Northern California prices are 12 cents lower than one year ago, according to AAA's survey of more than 400 gasoline retailers in Northern California, Nevada and Utah.
    The San Francisco Bay Area average has fallen 3 cents to $1.27, which remains 19 cents higher than the national average of $1.08, according to AAA.
    Gas prices in California and throughout much of the United States have maintained a near-constant decline since November. Analyst credit the price fall to a worldwide glut of oil that keeps supply ahead of demand.
    In an effort to boost sagging oil prices, for several months oil-producing nations tried repeatedly to reduce production. But cutback agreements have fallen short of their targets and the economic situation in Asia continues to hold down demand for oil, analysts say.
    Meanwhile, domestic production of gasoline reached an all-time high in July, said Alan Kovski of The Oil Daily, a Washington, D.C.-based newsletter.
    "Retail gas prices just keep drifting down everywhere," Kovski said. "Refineries are operating at high volumes."
    In Northern California, local averages for regular unleaded self-serve gasoline (since July 21) are:

     -- Chico, $1.15 (down 4 cents) 
     -- Eureka, $1.27 (down 2 cents) 
     -- Lake Tahoe, $1.28 (unchanged) 
     -- Oakland, $1.25 (down 2 cents) 
     -- Sacramento, $1.21 (down 4 cents) 
     -- San Jose, $1.26 (down 2 cents)
     -- San Rafael, $1.29 (down 3 cents) 
     -- Santa Rosa, $1.17 (down 3 cents)
     -- Concord, $1.21 (down a nickel) 
     -- Fresno, $1.15 (down 4 cents) 
     -- Monterey, $1.27 (down 4 cents) 
     -- Redding, $1.22 (down 3 cents) 
     -- San Francisco, $1.37 (down 1 cent) 
     -- San Mateo, $1.30 (up a penny) 
     -- Santa Cruz, $1.26 (down 3 cents) 
     -- Stockton $1.13 (down 2 cents) 
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    Since July 21, Nevada gas prices are unchanged at $1.21 a gallon. In Utah, prices are down a penny to $1.14 a gallon in the same period, according to AAA's survey.
    Established more than 90 years ago, the AAA affiliate of Northern California, Nevada and Utah offers a wide array of automotive, insurance, travel and financial services. It is the second largest regional affiliate of the national AAA organization.
    NOTE TO EDITORS: A chart showing 12 months of city averages is available on request. Additional city averages are also available.