Some Relief At The Pump
Walnut Creek, CA– Over the past few days, gas prices have been dropping in many parts of California.
However, according to the latest report from AAA Northern California, many of the monthly gas pump price comparisons show slight increases. All but eight Northern California metro areas tracked by AAA saw an increase at the pump over the past month.
The state’s average for a gallon of regular, unleaded gasoline is $3.78, which is unchanged since last month’s AAA report on July 12th. For comparison, that’s 61 cents higher than California’s average price on this date last year.
The national average price of $3.65 is up by one cent, which is 88 cents more than the national price on this date last year, when it was $2.77.
“Investor activity is a major factor that drives oil prices. Their recent uncertainly about the strength of the oil market is helping to push oil prices down and gas prices are following,” said AAA Northern California spokesperson Matt Skryja. “Consumer relief at the pump often lags behind any declines in crude prices, as cheaper oil works its way through the refining and distribution process.”
Relatively weak demand for gasoline across the nation is also helping to push pump prices lower. Demand is one of many factors that influence investors’ buying behavior. As demand drops, oil and gas become less attractive investments, so buying slows and the per barrel oil price and the gasoline pump price drop.
The average price of regular unleaded gas in downtown Sonora is $3.73.
For information on gas prices in the area click here.
Written by tina.falco@mlode.com
