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AAA Says Regional Gas Prices Rise

8 April 1998

Regional Gas Prices Edge Higher After Six Month Slide, Says AAA

    SAN FRANCISCO, April 8 -- Ending a six-month slide, gasoline
prices in Northern California edged up slightly over the last two weeks, AAA
reported today.
    "Retail gasoline averages $1.22 a gallon for regular unleaded self-serve
in Northern California," said AAA spokesman Paul Moreno.  "Prices are up a
penny since March 25."
    Two weeks ago, prices reached a three-year low at $1.21 per gallon.  The
last time Northern California gasoline prices were at this level was in April,
1995 according to AAA.
    Northern California gasoline prices are 24 cents lower than this time last
year, but remain 14 cents higher than the U.S. average of $1.08, according to
a March 17 national gas survey by AAA.
    Months of falling gasoline prices are attributed to steadily declining
crude oil prices, which until recently were at a 10-year low, according to oil
industry experts.
    But two weeks ago, oil-producing countries agreed to curtail production in
an effort to hold up prices, causing oil and gasoline traders to overreact,
according to Alan Kovski of The Oil Daily, a Washington, D.C.-based industry
newsletter.
    "Market reaction by (crude oil and gasoline) traders to international
cutback agreements was excessive," said Kovski.  "Oil and wholesale gasoline
prices jumped up too quickly and started to sink back last week."
    Global crude oil supplies remained ahead of demand for several months.  A
mild winter in the Northern Hemisphere, the economic situation in Asia, and
reduced driving in winter had helped keep demand for fuel moderate, oil
industry experts say.
    In Northern California, local averages for regular unleaded self-serve
gasoline are:  Chico, $1.15 (up 3 cents in two weeks); Concord, $1.19 (up
4 cents); Eureka, $1.29 (unchanged); Fresno, $1.11 (up a penny); Lake Tahoe,
$1.19 (up 3 cents); Monterey, $1.23 (up a penny); Oakland, $1.22 (unchanged);
Redding, $1.20 (up 2 cents); Sacramento, $1.17 (down a penny); San Francisco,
$1.32 (unchanged); San Jose, $1.24 (unchanged); San Mateo, $1.25 (up 3 cents);
San Rafael, $1.25 (unchanged); Santa Cruz, $1.25 (down 2 cents); Santa Rosa,
$1.15 (down a penny); and Stockton, $1.07 (unchanged).
    In two weeks time, Nevada gas prices are up by an average of a penny a
gallon to $1.12.  In Utah, prices are unchanged at $1.06 a gallon, according
to AAA's survey of more than 400 gasoline retailers in Northern California,
Nevada and Utah.
    Established more than 90 years ago, the Northern California, Nevada and
Utah AAA affiliates offer a wide array of automotive, insurance, travel and
financial services.  It is the second largest regional affiliate of the
national AAA organization.

SOURCE  AAA