December 15, 2014 - California state gas prices continue tumble as motorists reap in the benefits of filling up for less this holiday season. Today state gas prices are registering at $2.97 on average for a gallon of unleaded gasoline—that’s $0.24 cheaper than prices since AAA Northern California’s latest monthly gas survey of November 11.
Northern California’s average price for a gallon of regular unleaded gasoline is $2.94 - that’s $0.25 less than last month’s AAA reported price on November 11. 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 $2.75 per gallon. Of all metro areas tracked by AAA in Northern California, Yreka continues to register the highest price at $3.17 per gallon of unleaded regular.
“As crude oil costs continue to slide, gas prices are poised to drop even further,” said Cynthia Harris, AAA Northern California spokesperson. “Consumers can expect to see the price at the pump tick even lower as we approach the New Year.”
Today’s national average is $2.66 per gallon and the average price for regular unleaded gasoline could test $2.50 by Christmas, and likely will fall to the lowest level since 2009.
The average price for retail gasoline historically declines from fall into winter due to a number of factors including decreased demand. However, crude oil would have to fall by another $25 to $30 per barrel to cause the national average to drop below the $2per gallon threshold this winter, which remains unlikely. The price of oil accounts for approximately two-thirds of the price at the pump, and a $10 per barrel drop in the price of crude oil results in about a $0.25 drop in retail prices for motorists.
Global oil markets are still struggling to find a bottom since the Organization of Petroleum Exporting Countries’ (OPEC) decision to sustain production levels. In an attempt to protect its share of the global market, Saudi Arabia, the second largest member of OPEC, continues the recent price cuts and offers barrels of oil at prices not seen in at least 14 years. Brent Crude and West Texas Intermediate reached their lowest levels in five years on Friday and this continues to mean cheaper gasoline at the pump for drivers.
At the close of formal trading on Friday, West Texas Intermediate (WTI) settled below $66 per barrel for the first time since 2009, down $0.97 cents at $65.83 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.
AAA Northern California offers a wide array of automotive, travel, insurance, DMV, financial services and consumer discounts to more than 4.1 million members. AAA has been a leader and advocate for the safety and security of all travelers since it was founded 114 years ago.
