Auto Club: Gasoline Prices in 2001, What a Ride!

    LOS ANGELES--Dec. 27, 2001--If Southern California gas prices during the year 2001 were a theme park thrill ride, it would have been closed down for being too wild.
    With an average price for a gallon of regular self-serve gasoline swinging from as high as $2.01 in May to a current low of $1.08, gas prices have dropped 46 percent in seven months. The current price is the lowest since the Automobile Club of Southern California started tracking monthly prices in 1998.
    "Our analysts say that, without adjusting for inflation, the gas price fluctuations that motorists experienced this year have been the most extreme since the OPEC oil price hikes during the 1970s," said Jeffrey Spring, spokesman for the Auto Club. "The line chart of this year's prices looks like the profile of a mountain range."
    Starting at $1.60 in January, the monthly average price for self-serve unleaded rose steadily through the spring to an all-time high of $2.01 during June. Speculation over insufficient inventories due to a longer than expected switch from winter grade to summer grade gasoline production led gas prices on their upward spiral during the early spring.
    During the first part of the summer travel season, when the economy began to falter, prices peaked and began to slowly inch down. By July 17, prices fell 17 cents from the peak and gained downward speed -- dropping another 20 cents in August. Since Sept. 11, gas prices have declined nearly 4 cents per gallon each week.
    Following the terrorist attacks in New York and the Pentagon, oil-producing nations decided not to cut production even though demand had fallen. To date, the producing nations, including those that belong to OPEC, Russia, Norway and others cannot agree on the level of production cuts.
    In spite of these disagreements, spot market prices have been increasing in recent days, which may translate into price increases in the coming weeks. Also, since refiners have been selling gasoline from inventory rather than producing more, consumers may see a similar situation in the spring of 2002 as they saw in the spring of 2001 -- price spikes.
    For motorists who track their maintenance costs, gasoline prices in Southern California have averaged $1.53 during 2001.
    The Automobile Club of Southern California, the largest affiliate of the AAA, has been serving members since 1900. Today, the Auto Club's members benefit by roadside assistance, insurance products and services, travel agency, financial products, automotive pricing, buying and financing programs, automotive testing and analysis, trip planning services, highway and transportation safety programs. Information about these products and services is available on the Auto Club's Web site at www.aaa-calif.com.

    Note to Editors: A price-time chart of gas prices is available. Call 714/885-2333 for e-mail or fax.