In California, a tightening supply, combined with a strong gasoline demand, is contributing to pump prices moving higher.
But although state retail fuel prices are moving up and register as the highest in the nation, they are stabilizing.
Gas prices on the AAA Fuel Gauge Report this week shows the state pump price of unleaded regular is $2.86 per gallon, which is a modest increase of $0.06 higher than a month ago.
The least expensive fuel can be found in Marysville, where the average price for a gallon of regular is $2.57.
The highest price is in San Francisco where the average price is $3.02 a gallon, up $0.18 from last month’s AAA gas survey.
A year ago, the California average price for a gallon of unleaded gasoline reached $3.54, $0.68 more expensive than today’s average.
“The state average retail price of fuel is relatively steady and have moved by three cents or less over the past week,” said Cynthia Harris, AAA Northern California spokesperson. “But continual overall decrease of fuel costs marks the fourth consecutive year of lower gas prices, spelling a prolonged period of relief for pocketbooks.”
Conditions at the ExxonMobil Torrance refinery are reportedly improving and two units previously offline are scheduled to be start this week.
The latest data from the U.S. EIA points to gasoline inventories shrinking in the region; however, gasoline production is growing which could help balance the scale and keep gas prices relatively steady over the near term.
The national average price of gas reached a new 2016 high over the weekend, and today’s average of $2.37 per gallon is the most expensive average since September 2015.
Although pump prices have increased for 28 of the past 33 days, consumers continue to benefit from yearly savings and prices are down 42 cents per gallon compared to a year ago.
After reaching new 2016 highs, crude oil prices retreated to close out the week due to news of a strengthening U.S. dollar and data showing an uptick in the number of U.S. drilling rigs in operation.
Both benchmarks opened the week by extending this trend of sliding prices, as concerns of revived production out of the U.S. and global demand concerns begin to resurface.
At the close of Friday’s formal trading session on the NYMEX, WTI closed down $1.49 and settled at $49.07 per barrel.
To get the best mileage possible, AAA recommends keeping tires at the recommended pressure suggested by the vehicle manufacturer, performing routine maintenance and making sure fluids are clean and belts and hoses are in good repair.
The way you drive can also impact fuel economy. Smooth driving to avoid sudden stops and starts, combining trips and lightening a vehicle’s load also help to conserve gasoline.
AAA Fuel Gauge Report is the most comprehensive retail gasoline survey available, with over 100,000 self-serve stations surveyed every day, nationwide. Data is provided in cooperation with OPIS Energy Group and Wright Express, LLC.
State gas prices reach new high for summer
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