Gas Prices Decline;Increases May Be on the Horizon

    LOS ANGELES--Oct. 12, 2001--Pump prices dipped lower for the fourth consecutive week throughout Southern California, according to the Automobile Club of Southern California's Weekend Gas Watch.
    However, indicators point to conditions that could lead to a repeat of steep price increases that were experienced last spring.
    Refiners are reducing purchases of crude oil and are selling off their abundant supplies of refined gasoline. Producing and selling gasoline has become less profitable because the supply continues to run higher than an ever-declining demand.
    The current average price of regular unleaded self-serve in the Los Angeles/Long Beach reporting area is $1.519 per gallon, 3.6 cents lower than the price at this time last week. The price in San Diego is 3.1 cents lower than last week's average. The price for Central Coast motorists is 4 cents lower than last week. The Weekend Gas Watch monitors the average price of gasoline at popular destinations for motoring trips.
    "Wholesale prices of gasoline are going down, indicating that prices could still decline further in the coming weeks," said Jeffrey Spring, Auto Club spokesman. "Conditions are beginning to look similar to those preceding last spring when refiners reduced the amount of gas they were making. Those conditions caused pump prices to shoot up rapidly to more than $2 per gallon."

Average prices as of 2 a.m. Oct. 12.

Area                             Regular Change from  Record Price
                                          last week

Los Angeles-Long Beach           $1.519  -3.6 cents   $2.036 (set 5/25)

San Diego                        $1.659  -3.1 cents   $2.025 (5/29)

Santa Barbara-Santa Maria-Lompoc $1.649  -4.0 cents   $2.069 (5/16)

Las Vegas                        $1.462  -2.4 cents   $1.885 (3/27/00)

Phoenix-Mesa, Ariz.              $1.376  -1.3 cents   $1.720 (5/30)