AAA: Regional Gas Prices Dip Slightly

22 July 1998

Regional Gas Prices Dip Slightly, Says AAA; Lowest Summer Prices in 3 Years

    SAN FRANCISCO--July 21, 1998--Gas prices have fallen a penny in one month to reach the lowest summer price in three years, AAA reported today.
    "Retail gasoline averages $1.27 a gallon for regular unleaded self-serve in Northern California," said AAA spokesman Paul Moreno. "Prices have not been this low in the month of July since 1995, when the regional average was $1.26."
    Northern California prices are 7 cents lower than one year ago, according to AAA's survey of more than 400 gasoline retailers in Northern California, Nevada and Utah.
    The San Francisco Bay Area average has also fallen a penny to $1.30, which remains 20 cents higher than the national average of $1.10, according to AAA.
    "Gas prices are following a very typical trend," said Alan Kovski of The Oil Daily, a Washington, D.C.-based newsletter. "They reach a high point in June, then taper off gradually."
    Analysts attribute the relatively low gas prices to high inventories of gasoline and crude oil brought about by months of worldwide overproduction of oil.
    Although major oil-producing nations recently agreed to additional production cuts in an effort to boost sagging prices, oil prices remain one-third lower than last fall's level, when they peaked at $23 per barrel, said Kovski.
    Oil traders have not reacted strongly to proposed cutbacks because they feel the reduced production levels are insufficient and are not being met anyway, according to Kovski.
    In Northern California, local averages for regular unleaded self-serve gasoline (since June 23) are:


Chico, $1.19 (down 4 cents)         Concord, $1.26 (down a penny)
Eureka, $1.29 (down a penny)        Fresno, $1.19 (down a penny)
Lake Tahoe, $1.28 (up 2 cents)      Monterey $1.31 (up a penny)
Oakland, $1.27 (down a penny)       Redding, $1.25 (unchanged)
Sacramento, $1.25 (down 2 cents)    San Francisco, $1.38 (unchanged) 
San Jose, $1.28 (down 3 cents)      San Mateo, $1.29 (down 2 cents)
San Rafael, $1.32 (unchanged)       Santa Cruz, $1.29 (down 3 cents)
Santa Rosa, $1.20 (down a penny)    Stockton, $1.15 (down 3 cents)

    Since June 23, Nevada gas prices are unchanged at $1.21 a gallon. In Utah, prices are down a penny to $1.15 a gallon in the same period, according to AAA's survey.
    Established more than 90 years ago, the AAA affiliate of Northern California, Nevada and Utah offers a wide array of automotive, insurance, travel and financial services. It is the second largest regional affiliate of the national AAA organization.

    Note to Editors: A chart showing 12 months of city, state and national averages is available on request.