Auto Club: Monthly Gas Prices Cool Down As Summer Heats Up

(LOS ANGELES, July 14, 2009) —Gas prices have drifted under $3 a gallon in most parts of Southern California after a seven-week run-up that began at the start of May, according to the Automobile Club of Southern California monthly Fuel Gauge Report.

The Southern California July average price for regular self-serve gasoline is $2.90, two cents lower than the June average price of $2.923. This month’s average price is $1.68 lower than last year’s July price average of $4.585, which was the all-time highest monthly Fuel Gauge report price for Southern California.

The statewide average price of $2.885 is three cents lower than the June average of $2.915. For the second straight month, Marysville in Northern California has the state’s lowest gas price average at $2.678. Also for the second month in a row, Eureka has the highest price average in the state at $3.137.

Nationally, the average price of $2.517 is ten cents lower than the June average of $2.619. A tax that was reinstated on July 1 pushed Hawaii to become the most expensive state for gas prices at $3.257. Missouri has the lowest state average price at $2.268 – nearly a dollar lower than the Hawaii average.

“The ongoing flat demand for gasoline finally burst the bubble for crude oil and wholesale gasoline prices in late June, and pump prices have been coming down since then,” said Auto Club spokesperson Jeffrey Spring. “Oil industry analysts say there’s still lots of room for more price decreases in coming weeks, given the overall drop in wholesale prices.”

In Southern California, the averages for regular and premium grades of gasoline are listed below: