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Gas Prices at 2-Year Low in Northern California, AAA Reports

10 March 1998

Gas Prices at 2-Year Low in Northern California, AAA Reports

    SAN FRANCISCO, March 10 -- Continuing a six-month slide,
gasoline prices in Northern California have reached a two-year low, AAA
reported today.
    "Retail gasoline averages $1.25 a gallon for regular unleaded self-serve
in Northern California," said AAA spokesman Paul Moreno.  "Gas prices have not
been this low in Northern California since February, 1996."
    The Northern California average for self-serve regular unleaded has fallen
6 cents in three weeks.
    Crude oil prices have dropped nearly one-third since early October to a
four-year low.  Northern California gas prices are down 21 cents a gallon
-- 14 percent -- during the same period.
    "Crude oil production worldwide has been running ahead of demand," said
Alan Kovski of The Oil Daily, a Washington, D.C.-based industry newsletter.
    A mild winter in the United States and Europe has reduced demand for
heating oil.  In addition, the economic situation in Asia and reduced driving
in winter months has helped keep demand for fuel moderate, said oil industry
experts.
    Northern California gasoline prices remain about 20 cents higher than the
U.S. average, and are 12 cents lower than this time last year, according to
AAA.
    In Northern California, local averages for regular unleaded self-serve
gasoline are:  Chico, $1.16 (down 6 cents in three weeks); Concord,
$1.19 (down 9 cents); Eureka, $1.37 (down 7 cents); Fresno, $1.15 (down
5 cents); Lake Tahoe, $1.19 (down 3 cents); Monterey, $1.26 (down 9 cents);
Oakland, $1.23 (down 9 cents); Redding, $1.24 (down 2 cents); Sacramento,
$1.22 (down 6 cents); San Francisco, $1.34 (down 6 cents); San Jose,
$1.29 (down a nickel); San Mateo, $1.31 (down 7 cents); San Rafael,
$1.29 (down a nickel); Santa Cruz, $1.29 (down 6 cents); Santa Rosa,
$1.18 (down a dime); and Stockton, $1.09 (down 9 cents).
    Since mid-February, gas prices in Nevada are down by an average of 7 cents
a gallon to $1.20, and 2 cents lower to $1.08 a gallon in Utah, according to
AAA's monthly survey of more than 400 gasoline retailers in Northern
California, Nevada and Utah.
    The AAA affiliate for Northern California, Nevada and Utah serves nearly
four million members with an array of automotive, travel, insurance and
financial services.

SOURCE  AAA