LA Auto Club: 12-Week Slide Ends as Gasoline Prices Inch Higher

LOS ANGELES--Aug. 27, 2004--A downward trend in gasoline prices that lasted almost 3 months ended last week in most of Southern California as prices bottomed out and began inching higher, according to the Automobile Club of Southern California's Weekend Gas Watch. However, demand remains soft and gasoline inventories are strong, indicating that this could be a short-lived phenomenon.

The average price of self-serve regular gasoline in the Los Angeles-Long Beach area is $2.063 a gallon, which is three-tenths of a cent higher than last week, 12 cents lower than last month and 6 cents lower than last year. In San Diego, the price is $2.101, which is a eight-tenths of a cent above last week, 10 cents below last month and 6 cents lower than last year. On the Central Coast, the average price is $2.242, which is down 1.5 cents from last week, 11 cents below last month and 3 cents higher than last year. In the Inland Empire, the average price is $2.085, which is up 1.5 cents from last week, 12 cents lower than last month and 4 cents lower than last year.

"The bottoming out of gasoline prices was a result of the run-up of crude oil futures that reached $49 per barrel last week. In recent days crude futures have declined," said Auto Club spokesperson Carol Thorp. "The fundamental equation of lower demand and strong supply remains unchanged, and following Labor Day we should see further declines in pump prices."

The Weekend Gas Watch monitors the average price of gasoline as of 12:01 a.m., Aug. 27, 2004.

Area                         Regular   Change from     Record Price
                                        last week

Los Angeles-Long Beach        $2.063   +0.3 cents   $2.368 (5/28/2004)

Orange County                 $2.067   +0.5 cents   $2.353 (6/01/2004)

San Diego                     $2.101   +0.8 cents   $2.373 (5/26/2004)

Santa Barbara-Santa Maria-
 Lompoc                       $2.242   -1.5 cents   $2.489 (5/29/2004)

Riverside-San  Bernardino     $2.085   +1.5 cents   $2.399 (6/01/2004)

Bakersfield                   $2.109   +4.6 cents   $2.383 (6/01/2004)

Las Vegas                     $2.033   +5.6 cents   $2.279 (5/26/2004)