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Gas Prices Down -- For Now: Rise in Wholesale Prices Will be Seen at Pumps

20 June 2000

Gas Prices Down -- For Now, says AAA of Northern California; Recent Rise in Wholesale Prices Will Soon be Seen at the Pumps

    SAN FRANCISCO - In a rare switch, California gas prices have fallen while the rest of the nation sees rapidly rising prices, AAA reported today.

    Since mid-May, gasoline prices have fallen 2 cents in Northern California to an average of $1.71 for a self-serve gallon of regular unleaded, according to AAA.

    Despite the drop, the region's gas prices are 25 cents higher than one year ago.

    "While major cities in the upper Midwest have seen prices averaging well over $2 a gallon, West Coast prices have remained flat or down in the past month," said AAA of Northern California spokesman Paul Moreno. "But summer demand and higher oil prices are already starting to push up retail prices in some California cities."

    Since June 1, several U.S. cities are required to use a new blend of cleaner-burning fuel. But production and distribution problems are being blamed for tight supplies and skyrocketing retail prices in Chicago, Milwaukee, Detroit and several other cities primarily in the Upper Midwest, say analysts.

    However, the turmoil is not affecting California, because the West Coast gas and oil markets are isolated from those east of the Rocky Mountains.

    Nationwide, prices average $1.64 -- up 15 cents in one month. Chicago has the nation's most expensive gasoline at $2.13 for a self-serve gallon of regular unleaded.

    California prices are not expected to go much higher this summer, say analysts. "There's been a slight upward trend in West Coast wholesale (gasoline) prices," said Alan Kovski, energy analyst with the Kiplinger Washington Letter. "I would expect gasoline prices to go up a bit. Not a whole lot, but some."

    The nine-county Bay Area average is $1.75 -- down 3 cents in a month, according to AAA.

(AAA of Northern California) Gas Price Survey  June 20, 2000
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	   The following are today's city averages in California, with the
change since May 16 reflected in parentheses.

	   --  Chico, $1.61 (up 3 cents)

	   --  Concord, $1.67 (unchanged)

	   --  Eureka, $1.87 (unchanged)

	   --  Fresno, $1.61 (up 2 cents)

	   --  Modesto, $1.61 (up 2 cents)

	   --  Oakland, $1.77 (down 2 cents)

	   --  Bakersfield $1.65 (down a penny)

	   --  Sacramento, $1.66 (down 2 cents)

	   --  Salinas, $1.64 (down 2 cents)

	   --  San Francisco, $1.85 (down a penny)

	   --  San Jose, $1.75 (down 4 cents)

	   --  San Rafael, $1.78 (down 2 cents)

	   --  Santa Rosa, $1.71 (down a penny)

	   --  Los Angeles $1.59 (down 4 cents)

    In Nevada, the average price of gas is $1.65, down a nickel in five weeks. In Utah, the state average is $1.52, up 3 cents in the same period, 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 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.