Thursday, 19 September 2024

California gas prices second highest in nation

State gas prices remain the second highest in the nation, as refinery issues in California continue to push prices upward.

This week's state prices are registering at $2.73 on average for a gallon of unleaded gasoline – that’s $0.07 less than prices since AAA Northern California’s monthly gas survey of Aug. 9, 2016.
 
Northern California’s average price for a gallon of regular unleaded gasoline is $2.71 – that’s $0.08 more than last month’s AAA reported price.

The highest recorded price ever registered in the state of California was in October 2012, at $4.67 a gallon for unleaded regular. 
     
The least expensive average price in Northern California can be found in Marysville, where regular unleaded gasoline is $2.43 per gallon.

Of all metro areas tracked by AAA in Northern California, South Lake Tahoe, registering at $2.98 per gallon of unleaded regular, is showing the highest gas prices.
 
“Strong demand in the West Coast region is currently pressing on limited supplies,” said Cynthia Harris, AAA Northern California spokesperson. “The drop in supplies can likely be attributed to issues at two California refineries earlier this month. The region also currently has the highest wholesale price for gasoline, which translates to higher prices for drivers.”

The national average price for unleaded gasoline is expected to keep moving lower as we head into fall, barring any unexpected disruptions in supply or spikes in the price of crude oil.

Pump prices typically decline during this time of year due to lower driving demand after the busy summer driving season has concluded and the changeover from summer-blend to a cheaper-to-produce winter-blend gasoline, which takes place in many parts of the country and begins on Sept. 15.
   
The difference between summer- and winter-blend gasoline involves the Reid Vapor Pressure (RVP) of the fuel. RVP is a measure of how easily the fuel evaporates at a given temperature. The more volatile a gasoline (higher RVP), the easier it evaporates.

Oil prices briefly spiked last week due to the release of an Energy Information Agency report that stated U.S. crude inventories fell 14.5 million barrels, but quickly retreated when inventory numbers were attributed to import disruption due to tropical storm Hermine. WTI opened this week trading lower, following news that the U.S. oil rig count increased for the tenth consecutive week and the sustained strength of the U.S. dollar.

Traders will continue to keep an eye on discussions surrounding the upcoming OPEC meetings and the possibility of member and non-member countries agreeing to a production freeze.

At the close of last Sept. 9's formal trading session on the NYMEX, WTI was up $1.74 to settle at $45.88 per barrel.

To get the best mileage possible, AAA recommends keeping tires at the proper 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 your load also help conserve gasoline.

AAA’s 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.

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