Gas Prices Drop 35 Cents

Gas prices have dropped to their lowest levels in California in seven months. In many communities, the average price per gallon of regular unleaded has fallen by 60 cents or more since the current downward trend began in mid-August.

According to a new report from AAA of Northern California, which tracks gas prices as a service to consumers, the statewide average price for a gallon of regular unleaded gas is now $2.60. That price represents a decrease of 36 cents per gallon from the last monthly AAA gas price report on Sept. 12.

“What constitutes a reasonable price appears to be changing,” said Sean Comey, spokesman for AAA of Northern California. “Almost exactly two years ago, the statewide average gas price hit a new record high: $2.24 a gallon. Many people were outraged. Today, the price is 36 cents a gallon more than it was then and some consumers say they’re relieved the cost of fuel is so low.”

Lower prices for crude oil, the raw material from which gas is made, are helping drive down fuel costs for consumers. In the short term, there do not seem to be any imminent problems that would tend to push prices higher. Although OPEC, the Organization for Petroleum Exporting Countries, is considering a decrease in oil production in response to falling prices, there do not appear to be any significant concerns about supply in the market at this time.

The current average price in California is 40 cents per gallon lower than a year ago. The most expensive average gas price in California communities where AAA monitors fuel costs is in Eureka, where regular unleaded sells for $2.92 per gallon. The lowest price among California cities tracked by AAA is in Marysville, where gas costs an average of $2.45 per gallon. Throughout Northern California, the average price is $2.61. In the Bay Area, the average price is $2.68. The statewide average record high price of $3.38 was set on May 18 this year.

The nationwide average price for regular unleaded is $2.26 per gallon, down 35 cents from the previous AAA gas price report on September 12. The national average is 34 cents per gallon lower than the California statewide average price. The least expensive gasoline in the country is found in Missouri, in both Kansas City and Springfield, where regular unleaded costs an average of $1.99. The highest average price for gas in the United States in Wailuku, Hawaii (Maui), where a gallon of regular unleaded sells for $3.33.