Gas Prices Back Away From $4 A Gallon As Wholesale Prices Collapse

Gilmore Gas
Photo by Stefanus Prayitno

Southern California gas prices have dropped by a penny a day in the last week, bringing the nearly 90-cent price spike in April and May to a definitive end, according to the Automobile Club of Southern California's Weekend Gas Watch. The retail state average is $3.739 a gallon for regular today, 5.2 cents less than last week.

 

The average price of self-serve regular gasoline in the Los Angeles-Long Beach area is $3.91 per gallon, which is 6.7 cents less than last week, 38 cents more than last month, and 24 cents lower than last year. In San Diego, the average price is $3.879, which is 7.1 cent less than last week, 42 cents higher than last month, and 23 cents lower than last year. On the Central Coast, the average price is $3.853, 4 cents less than last week, 41 cents higher than a month ago, and 31 cents less than last year. In the Inland Empire, the average per-gallon price is $3.854, down 6.1 cents from last week, 41 cents more than last month, and 26 cents less than last year.

 

“The wholesale price of Los Angeles gasoline has dropped 76 cents since May 11 as more supply has become available,” said Auto Club spokesman Jeffrey Spring. “Given the more than $1.80-cent difference between wholesale and retail prices, we would expect gas station prices to be coming down much more quickly, since the normal margin is $1 or less.”

 

The Weekend Gas Watch monitors the average price of gasoline. As of 9 a.m. on May 28, averages are: 

 

Area

  Regular   

One-week

change

Record Price

Los Angeles – Long Beach

$3.910

   -6.7 cents  

    $4.705 (10/9/12)

 

 

 

 

Orange County

$3.873

-8.5 cents

   $4.690 (10/8/12)

 

 

 

 

San Diego

$3.879

   -7.1 cents

   $4.725 (10/8/12)

 

 

 

 

Santa Barbara – Santa Maria – Lompoc

$3.853

    -4.0 cents

   $4.709 (6/21/08)

 

 

 

 

Riverside – San Bernardino

$3.854

 -6.1 cents

   $4.688 (10/8/12)

 

 

 

 

Ventura

$3.882

 -6.9 cents

   $4.689 (10/7/12)

 

 

 

 

Bakersfield

$3.681

-4.2 cents

   $4.648 (10/9/12)