Regional Gas Prices Hit 7-year Low, Says AAA
17 February 1999
Regional Gas Prices Hit 7-year Low, Says AAA; Pump Prices Continue Dropping for Ninth Month
SAN FRANCISCO--Feb. 16, 1999--February was another record-breaking month for low gas prices, AAA reported today.
Gas prices in Northern California averaged $1.14 a gallon for self-serve regular unleaded -- the lowest price in nearly seven years, according to AAA's monthly gas survey. Last month's average hit a five-year low.
"Gas prices in Northern California haven't been lower since April 1992, when the regional average was $1.11," said AAA spokesman Paul Moreno. "Pump prices continued a nine-month decline as gas and oil supplies remain ahead of demand."
The Northern California average is down a penny in one month and down 18 cents in one year, according to AAA. The San Francisco Bay Area average also dipped a penny since January to $1.18, and is 22 cents higher than the national average of 96 cents.
The latest pressure contributing to the oil glut has been a relatively warm winter, which reduced demand for heating oil, analyst say.
"A surplus of heating oil leads to the surplus of gasoline as refiners shift more production to gasoline," said Alan Kovski of The Oil Daily, a Washington, D.C.-based newsletter.
Meanwhile, crude oil prices continue to hover around $12 a barrel
-- down from $16 a barrel a year ago. Even a recent announcement by the U.S. government to acquire more oil for the Strategic Petroleum Reserve did not affect crude market prices, said Kovski.
A year-long global oversupply of oil has brought down crude prices, causing lower gas prices throughout the country. Demand is lower because of weak economic conditions in parts of the world. Oil supplies are high from overproduction, analysts say.
In Northern California, local averages for regular unleaded self-serve gasoline (since January 19) are:
-- Chico, $1.01 (down 4 cents) -- Concord, $1.10 (down a penny) -- Eureka, $1.19 (down 2 cents) -- Fresno, $1.04 (down a penny) -- Lake Tahoe, $1.19 (up a penny) -- Modesto, $1.01 (unchanged) -- Monterey, $1.21 (up a penny) -- Oakland, $1.18 (down 3 cents) -- Redding, $1.10 (down 2 cents) -- Sacramento, $1.04 (up a penny) -- Salinas, $1.13 (down 3 cents) -- San Francisco, $1.27 (up a penny) -- San Jose, $1.13 (down a penny) -- San Mateo, $1.22 (down a penny) -- San Rafael, $1.17 (down a penny) -- Santa Cruz, $1.14 (down a penny) -- Santa Rosa, $1.09 (down 3 cents) -- Stockton, $1.08 (unchanged)
Since last month, Nevada gas prices are down 3 cents to $1.09 a gallon. In Utah, prices are up 2 cents to 98 cents a gallon in the same period, according to AAA's survey of more than 400 gas stations in Northern California, Nevada and Utah.
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 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. Additional city averages, including Southern California cities, are available on request.
