---

Northern California Gas Prices at All-time High, says AAA

21 April 1999

Northern California Gas Prices at All-time High, says AAA; But Signs of Relief Seen After Weeks of Soaring Pump Prices

    SAN FRANCISCO--April 20, 1999--Gas prices in Northern California reached an all-time high in April, AAA of Northern California reported today in its gas survey.
    Prices climbed 9 to 20 cents a gallon at Northern California cities since AAA's survey three weeks ago, according to AAA.
    "The good news is that wholesale gasoline prices have started coming down, and many stations have recently lowered retail prices," said AAA spokesman Paul Moreno. "The bad news is prices are not going down as fast as they went up."
    The Northern California average has shot up 54 cents to $1.68 in just two months -- the fastest price climb in decades, according to AAA's survey.
    The average price for the San Francisco Bay Area is $1.70. The national average of $1.15 is up 6 cents in three weeks, according to AAA. All prices are for self-serve regular unleaded gasoline.
    The rapid rise in prices stems from turmoil at California refineries in February and March that reduced gasoline production, which in turn sent wholesale prices skyward. Since then, some repairs have been made and other refineries increased production. This has boosted inventories and curbed soaring wholesale gasoline prices.
    Meanwhile, crude oil prices rose to a one-year high last week after Organization of Petroleum Exporting Countries (OPEC) members began cutting production in order to boost prices.
    California gas prices are more prone to fluctuation as the market is isolated from other major oil and gas producing regions east of the Rocky Mountains. Analysts say few refineries in the Gulf of Mexico can make gasoline meeting Californias strict standards on short notice. The time and cost of shipping through the Panama Canal also discourages such imports.
    But lately, higher market prices in California have lured imports of gasoline and other petroleum products from the Gulf Coast and Asia, which have helped offset low inventories, analysts say.
    In Northern California, local averages for regular unleaded self-serve gasoline (since the special survey of March 30) are:

--   Chico, $1.65 (up 9 cents)
--   Fresno, $1.62 (up 20 cents)
--   Lake Tahoe, $1.69 ( up 14 cents)
--   Oakland, $1.72 (up 18 cents); breaking the previous record of
     $1.60 in May 1996
--   Sacramento, $1.67 (up 17 cents); breaking the previous record of
     $1.56 in May 1996
--   Salinas, $1.63 (up 7 cents)
--   San Francisco, $1.74 (up 13 cents); breaking the previous record
     of $1.61 of May 1996
--   San Jose, $1.66 (up 13 cents), breaking the previous record of
     $1.54 of May 1996
--   Santa Rosa, $1.65 (up 11 cents), breaking the previous record of
     $1.55 of June 1996

    Since March 30, Nevada gas prices are up 24 cents to $1.61 a gallon. In Utah, prices are up 8 cents to $1.25 a gallon in the same period, according to AAAs survey of nearly 500 gas stations in Northern California, Nevada and Utah.
    Established nearly 100 years ago, the AAA affiliate of Northern California, Nevada and Utah offers a wide array of automotive, insurance, travel and financial services to its 4 million members.

    NOTE TO EDITORS: A chart showing 12 months of city averages is available.