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Northern California Gas Prices Lower as Summer Driving Season Heats Up, Says AAA; Slight Upturn in Prices Breaks 2-Month Decline

22 June 1999

Northern California Gas Prices Lower as Summer Driving Season Heats Up, Says AAA; Slight Upturn in Prices Breaks 2-Month Decline

    SAN FRANCISCO--June 22, 1999--Northern California gas prices are down 13 cents in six weeks as the summer driving season heats up, AAA of Northern California reported today.
    Gas prices in Northern California now average $1.46 a gallon for self-serve regular unleaded, about 18 cents higher than one year ago, according to AAA's monthly gas survey.
    "Northern California gas prices had been falling for several weeks, but retail prices recently took a slight upturn as West Coast gasoline supplies tightened," said AAA spokesman Paul Moreno. "With the summer driving season well under way, demand for gasoline should remain strong for months."
    Since May 11, the San Francisco Bay Area average fell 12 cents to $1.51, and is 37 cents higher than the national average of $1.14. The national average is down 2 cents in the same period.
    Analysts say a mix of West Coast refinery trouble, including a ruptured gasoline pipeline in Washington, has reduced gasoline production, causing wholesale prices to rise sharply. Despite the sudden surge in wholesale prices, retail price increases have not been as dramatic.
    Oil prices have come up in recent months from their 12-year lows early this year. Analysts say members of the Organization of Petroleum Exporting Countries (OPEC) are succeeding in curbing oil production in an effort to boost prices.
    "OPEC's self-restraint seems to be working, with about a 90 percent adherence rate," said Alan Kovski, an energy analyst with the Kiplinger Washington Letter.
    In Northern California, local averages for regular unleaded self-serve gasoline (since May 11) are:

--   Chico, $1.39 (down 6 cents)
--   Eureka, $1.58 (down 9 cents)
--   Lake Tahoe, $1.51 (down 9 cents)
--   Monterey, $1.50 (down 13 cents)
--   Redding, $1.46 (down 8 cents)
--   Salinas, $1.46 (down 12 cents)
--   San Jose, $1.50 (down 13 cents)
--   San Rafael, $1.51 (down 11 cents)
--   Santa Rosa, $1.49 (down 9 cents)
--   Concord, $1.44 (down 12 cents)
--   Fresno, $1.32 (down 19 cents)
--   Modesto, $1.33 (down 17)
--   Oakland, $1.51 (down 13 cents)
--   Sacramento, $1.37 (down 16 cents)
--   San Francisco, $1.60 (down 9 cents)
--   San Mateo, $1.57 (down 11 cents)
---  Santa Cruz, $1.47 (down 12 cents)
--   Stockton, $1.36 (down 20 cents)
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    Since May 11, Nevada gas prices are down 17 cents to $1.35 a gallon. In Utah, prices are down a penny to $1.25 a gallon in the same period, according to AAA's survey of nearly 500 gas stations in Northern California, Nevada and Utah.
    Established nearly 100 years ago, AAA offers a wide array of automotive, travel, insurance and financial services. The California State Automobile Association serves nearly 4 million members and is the second largest regional affiliate of the national AAA organization.

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