Gas Prices Edge Lower in Northern California, says AAA

5 April 2000

Gas Prices Edge Lower in Northern California, says AAA; Pump Prices Recede Slightly After Hitting All-time Highs

    SAN FRANCISCO--April 4, 2000--California gas prices are sliding ever so slightly after setting record highs in late March, AAA reported today.
    "Better refinery production and lower oil prices are bringing penny-by-penny relief at the gas pumps," said Paul Moreno, spokesman for AAA of Northern California. "Once again, we are seeing gas prices go up like a rocket and come down like a feather."
    A special survey of nine Northern California cities found gas prices in eight cities higher today than the AAA survey of three weeks ago.
    However, the average retail price of regular unleaded gasoline in California peaked about two weeks ago at $1.79 -- an all-time high -- and have since fallen by 2 cents a gallon to $1.77, according to weekly surveys of 38 California stations by the U.S. Department of Energy.
    Analysts are unsure just how long the current downward trend will continue. Last week, OPEC ministers agreed to boost oil production in an effort to lower oil prices, which peaked above $34 a barrel in early March but has since fallen to around $27 a barrel. On the West Coast, refinery output has improved inventories and brought down wholesale gasoline prices.
    But eventually the downward trend will collide with increasing demand for gasoline in the spring and summer months. California gas prices are also prone to volatility, say analysts, because high oil prices early this year left domestic oil and gasoline stocks low as refineries curtailed crude purchases and gasoline production.
    "It looks really uncertain on gasoline prices for the next few months because of low inventories," said Alan Kovski, energy analyst with the Kiplinger Letter in
    Washington, D.C. "The lower the inventories, the more we have to worry about spikes in gas prices."
    AAA of Northern California conducted a special gas price survey today. AAA will resume its regular monthly gas survey on April 18.
    The following are today's city averages in Northern California, with the price change since March 14 in parentheses.


Concord, $1.80 (down a penny)    Fresno, $1.80 (up 2 cents)

Monterey, $1.86 (up 4 cents)     Oakland, $1.87 (up 3 cents)

Redding, $1.84 (up a penny)      Sacramento, $1.83 (up 6 cents)

San Jose, $1.88 (up 3 cents)     San Francisco, $1.94 (up 4 cents)

Santa Rosa, $1.82 (up 4 cents)

    In Nevada, Reno's average price of gas price is $1.86, unchanged in three weeks. The Las Vegas price is also $1.86, up 13 cents in the same period. In Salt Lake City, the average is up to 8 cents to $1.57, 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.