Gas Prices Leap Higher in Northern California, says AAA

1 March 2000

Gas Prices Leap Higher in Northern California, says AAA; Low Refinery Production, Crude Costs Push Up Gas Prices

    SAN FRANCISCO--Feb. 29, 2000--Gas prices in Northern California cities leapt 12 to 17 cents a gallon in two weeks, AAA reported today.
    "Lower refinery output and higher crude oil costs have pushed gas prices up sharply throughout the west," said Paul Moreno, spokesman for AAA of Northern California.
    Nationwide, gas prices are at a historic high of $1.42, according to the U.S. Dept. of Energy.
    Higher crude costs are being blamed for the 5 to 6 cent per gallon hike in gas prices nationwide. But analysts say the West Coast is experiencing refinery trouble in addition to higher crude costs.
    "Gasoline inventories are unusually low on the West Coast for this time of year due to a series of refinery shutdowns -- both planned and unplanned," said Scott Berhang, an editor for the Oil Price Information Service in Lakewood, N.J. "But this situation will not last. It will be a different market in a couple of weeks."
    A recent American Petroleum Institute survey shows gasoline inventories in western states at 26.6 million barrels. Inventories of 27.5 to 28 million barrels are considered normal for this time of year, said Berhang.
    Despite the dramatic jumps, Northern California gas prices are still below all-time highs set last spring following a series of refinery fires and mishaps.
    Crude oil prices began a steady upward climb last spring after OPEC ministers and some non-OPEC member nations agreed to cut production in an effort to boost oil prices. A barrel of oil sold for $12 a barrel one year ago, and now costs about $30.
    Analysts expect OPEC members to agree to increase production and bring some relief for oil prices at their March 27 meeting in Vienna, Austria. But increased demand for gasoline in spring and summer might offset any benefit at the pumps.
    AAA of Northern California conducted a special gas price survey today in response to rapidly rising gas prices, measuring only eight Northern California cites. AAA will resume its regular monthly gas survey on March 14.
    The average in Los Angeles is up 9 cents to $1.46 in the two weeks.
    The following are today's city averages in Northern California, with the price change since Feb. 15 in parentheses.


-- Chico, $1.55 (up 16 cents)     -- Salinas, $1.57 (up 12 cents)
-- Fresno, $1.55 (up 12 cents)    -- San Francisco, $1.71 (up 12 cents)
-- Oakland, $1.66 (up 15 cents)   -- San Jose, $1.66 (up 16 cents)
-- Sacramento, $1.58 (up 17 cents)-- San Rafael, $1.66 (up 16 cents)

    In Nevada, Reno's average price of gas price is $1.68, up 17 cents and Las Vegas' price is up 11 cents to $1.58 in two weeks. In Salt Lake City, the average is up to 6 cents to $1.42, according to AAA.
    Established 100 years ago, AAA offers a wide array of automotive, travel, insurance and financial services. The California State Automobile Association serves nearly 4 million members and is the second largest regional affiliate of the national AAA organization.

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