Gas Price Drops Continue, But for How Long?

Gas Prices
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Southern California gas prices have dropped for the fourth straight week and, while wholesale prices in Los Angeles tipped up this week, the margin between those and retail prices is still wider than typical, which may keep downward pressure on retail for a few more weeks, according to the Automobile Club of Southern California's Weekend Gas Watch. The retail state average is $2.689 a gallon for regular today, eight cents less than last Thursday, 21 cents less than on this day last month and $1.03 per gallon lower than a year ago.
The average price of self-serve regular gasoline in the Los Angeles-Long Beach area is $2.721 per gallon, which is nine cents lower than last week, 26 cents lower than last month, and $1.27 lower than last year. In San Diego, the average price is $2.740, which is 7.5 cents lower than last week, 20 cents lower than last month, and $1.20 less than this time last year. On the Central Coast, the average price is $2.790, 9.5 cents less than last week, 20 cents lower than a month ago, and $1.12 less than last year. In the Inland Empire, the average per-gallon price is $2.681, 9.3 cents less than last week, 23 cents less than last month, and $1.26 less than last year.
“Large inventories and strong production from local refineries have pushed wholesale and retail prices lower for many weeks, creating about a $1.40 gap between wholesale and retail, a gap that should be narrower looking at historical trends.” said Auto Club spokesman Jeffrey Spring. “However, experts are calling the current situation a temporary supply glut which will correct itself over the next few weeks because of continued strong demand. We’ll have to see if prices continue to drop because of the wide margins, or if the six-cent increase in wholesale prices this week, signals a change in direction.”

The Weekend Gas Watch monitors the average price of gasoline. As of 9 a.m. on August 4, averages are:

Los Angeles – Long Beach


-9 cents

  $4.705 (10/9/12)





Orange County


-9.2 cents

  $4.690 (10/8/12)





San Diego


-7.5 cents

  $4.725 (10/8/12)





Santa Barbara – Santa Maria –



-9.5 cents

  $4.709 (6/21/08)





Riverside – San Bernardino


-9.3 cents

  $4.688 (10/8/12)







-9.8 cents

  $4.689 (10/7/12)







-6 cents

 $4.648 (10/9/12)

Media Contacts

Jeffrey Spring
(714) 885-2333
Elaine Beno
(714) 885-2324