Gas Prices Plunge In Northern California Despite Middle East Tensions, AAA Reports
17 February 1998
Gas Prices Plunge In Northern California Despite Middle East Tensions, AAA Reports
SAN FRANCISCO, Feb. 17 -- Gasoline prices in Northern
California are at a 14-month low after plunging 6 cents since mid-January --
despite increased tensions in the Persian Gulf, according to AAA of Northern
California's monthly gas survey.
"Retail gasoline averages $1.31 a gallon for regular unleaded self-serve
in Northern California," said AAA spokesman Vernon C. Thompson. "Gas prices
have not been this low in Northern California since December 1996, when price
wars drove down prices in much of the state."
Global crude oil prices have fallen nearly 20 percent since early November
and have remained low.
"The only market reaction to the Iraq situation was the last week in
January, but the markets got bored with recurring saber rattling and now (oil
traders) don't take it so seriously," said Alan Kovski of "The Oil Daily," a
Washington, D.C.-based industry newsletter.
Demand is moderate due to economic trouble in Asia and less driving in
winter, say oil industry experts. A mild winter in the United States and
Europe has reduced demand for heating oil. Meanwhile, crude oil production is
high, said Kovski.
The national average gas price fell 5 cents since mid-January, according
to AAA.
Northern California prices are 20 cents higher than the U.S. average and 4
cents lower than this time last year, according to AAA. All prices are for
regular, unleaded self-serve gasoline.
In Northern California, February city averages for regular unleaded self-
serve gasoline are: Chico, $1.22 (down 6 cents); Concord, $1.28 (down
6 cents); Eureka, $1.44 (unchanged); Fresno, $1.20 (down 7 cents); Lake Tahoe,
$1.22 (down 6 cents); Monterey, $1.35 (down 8 cents); Oakland, $1.32 (down
7 cents); Redding, $1.26 (down 11 cents); Sacramento, $1.28 (down 7 cents);
San Francisco, $1.40 (down a nickel); San Jose, $1.35 (down 7 cents); San
Mateo, $1.38 (down 6 cents); San Rafael, $1.34 (down 8 cents); Santa Cruz,
$1.35 (down 4 cents); Santa Rosa, $1.28 (down 3 cents); and Stockton, $1.18
(down 12 cents).
Since mid-January, gas prices in Nevada are down 8 cents a gallon to
$1.27, while prices in Utah fell 13 cents a gallon to $1.10, according to
AAA's monthly survey of more than 400 gasoline stations in Northern
California, Nevada and Utah.
The AAA affiliate for Northern California, Nevada and Utah and serves
nearly four million members with an array of automotive, travel and insurance
services.
SOURCE California State Automobile Association
