WALNUT CREEK – As temperatures are dropping, so are gas prices. According to the latest report from AAA Northern California, consumers all across the northern half of the state are seeing gas prices slowly fall along with the mercury.
In every single metro area where AAA tracks gas prices there has been a decrease in the average price compared to AAA’s last survey on November 10. Additionally, all but four of those metro areas now have an average price below the $3.00 a gallon mark.
“Overall, gasoline prices have been very stable since the end of October, and now, most prices have fallen by a few cents since the start of November,” said AAA Northern California spokesperson Matt Skryja. “Given the roller coaster ride California consumers have faced in 2009, a modest, steady decline at the gas pump is a welcome change.”
Despite the decline in prices, California’s average gas price is still the third highest among all 50 states according to the latest report from AAA, which tracks gasoline prices as a service to consumers. The Golden State’s average for a gallon of regular unleaded gasoline is $2.91, down 7 cents since last month’s report. For perspective, that’s $1.09 more than California’s average price on this date last year, when it was $1.82.
Northern California gas prices are now averaging $2.88, down 9 cents from last month. In the San Francisco Bay Area, motorists can expect to pay an average price of $2.99, an 11-cent drop. The national average price of $2.63 is down by 3 cents, which is 91 cents more than the national price on this date last year, when it was $1.72.
According to AAA analysts, the strength or weakness of the dollar is what is largely responsible for the gap between oil prices and retail gas prices.
Oil prices, which are directly influenced by dollar strength, respond daily to changes in the currency’s value. Retail gasoline prices, which are being cushioned by still very large supplies and relatively tepid demand, are not nearly as responsive to changes in the dollar’s value.
More specifically, figures from the federal government show that oil consumption is now around 19 million barrels a day, compared to a high in 2005, when consumption reached almost 21 million barrels a day.
The least expensive average price in Northern California can be found in Marysville where unleaded is $2.69.
Of all the metro areas in Northern California where gas prices are tracked by AAA, Tahoe City has the highest average price at $3.20, which is also the highest price in the lower 48 states.
The least expensive gasoline in the country is found in Casper, Wyoming where the average price of gas is $2.31. Wailuku, Hawaii, holds the dubious crown for the highest average price in the nation, with $3.73 per gallon.
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