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Gas Prices Skyrocket in Northern California, Says AAA

31 March 1999

Gas Prices Skyrocket in Northern California, Says AAA; Refinery Troubles Trigger Market Reaction

    SAN FRANCISCO--March 30, 1999--Gas prices in Northern California cities shot skyward in recent weeks, approaching all-time highs set three years ago, AAA of Northern California reported today.
    Prices climbed 31 to 44 cents a gallon since AAA's survey of March 11, the fastest price increase in Northern California this decade, according to AAA.
    "Turmoil at California refineries caused an immediate market reaction," said AAA spokesman Paul Moreno. "Unfortunately, consumers are paying the price for market speculation."
    Analysts say West Coast gas prices are more prone to fluctuations, as the area is isolated from other major gas and oil producing regions east of the Rocky Mountains. When inventories are reduced, other states cannot easily import gasoline into California, since much of it needs to travel from the Gulf of Mexico through the Panama Canal. This is now occurring, say analysts.
    Retail gas prices are expected to level off and start falling now that refineries are overcoming production problems and imports of gasoline and other petroleum products are reaching the West Coast, the California Energy Commission reported yesterday.
    Crude oil prices have also been on the rise after hovering near 12-year lows in December. Ministers of the Organization of Petroleum Exporting Countries met last week and agreed to reduce production in an effort to boost sagging crude prices.
    Gas prices had been relatively low as recently as February, when the average hit a seven-year low in Northern California and a 20-year low nationwide, according to AAA.
    In Northern California, local averages for regular unleaded self-serve gasoline (since March 11) are:

    -- Chico, $1.56 (up 44 cents); prior high not available
    -- Fresno, $1.42 (up 33 cents); prior high not available
    -- Lake Tahoe, $1.55 (up 31 cents); prior high not available
    -- Oakland, $1.54 (up 32 cents); prior high was $1.56 in July
    1996. Record high was $1.60 in May 1996
    -- Sacramento, $1.50 (up 34 cents); prior high was $1.52 in
    July 1996. Record high was $1.56 in May 1996
    -- Salinas, $1.56 (up 35 cents); prior high not available
    -- San Francisco, $1.61 (up 31 cents), equal to prior and
    record high reached in May 1996
    -- San Jose, $1.53 (up 35 cents), prior high and record was
    $1.54 in May 1996
    -- Santa Rosa, $1.54 (up 36 cents), prior high and record was
    $1.55 in June 1996

    Since March 11, Las Vegas gas prices are up 21 cents to $1.32 a gallon while Reno prices are up 25 cents to $1.48. In Salt Lake City, prices are up 17 cents to $1.16 a gallon in the same period, according to AAA's survey of nearly 500 gas stations in Northern California, Nevada and Utah.
    Established nearly 100 years ago, the AAA affiliate of Northern California, Nevada and Utah offers a wide array of automotive, insurance, travel and financial services to its 4 million members. It is the second largest regional affiliate of the national AAA organization.

    Note to editors: A chart showing 12 months of city averages is available.