LA Auto Club: Gasoline Prices Crest -- Conditions Right for Downward Trend

LOS ANGELES--June 4, 2004--After two months of increases during which retail gasoline prices soared 24 cents per gallon, a plateau appears to have been reached and indicators point to lower prices in the coming weeks, according to the Automobile Club of Southern California's Weekend Gas Watch.

The average price of self-serve regular gasoline in the Los Angeles-Long Beach area is $2.365 a gallon, which is two-tenths of a cent lower than last week, 20 cents higher than last month and 62 cents higher than last year. In San Diego, the price is $2.365, which is four-tenths of a cent below last week, 19 cents higher than last month and 65 cents above last year. Motorists in the Central Coast pay an average price of $2.487, which is unchanged from last week, 19 cents above last month and 61 cents higher than last year.

"Growing inventories and pledges by OPEC to increase production have sent wholesale gasoline prices to $1.50 per gallon on the Los Angeles spot market. Two weeks ago they were about 20 cents per gallon higher," said Auto Club spokesperson, Carol Thorp. "While retail price declines last week were tiny, we expect downward pressure to increase. Prices at this time next month could be several cents per gallon lower than they are currently."

The Weekend Gas Watch monitors the average price of gasoline as of 12:01 a.m., June 4.

Area                          Regular  Change from     Record Price
                                        last week

Los Angeles - Long Beach      $2.365   -0.2 cents   $2.368 (5/28/2004)

Orange County                 $2.348   -0.2 cents   $2.353 (6/01/2004)

San Diego                     $2.365   -0.4 cents   $2.373 (5/26/2004)

Santa Barbara-Santa Maria-
 Lompoc                       $2.487    0.0 cents   $2.489 (5/29/2004)

Riverside - San Bernardino    $2.392   -0.1 cents   $2.399 (6/01/2004)

Bakersfield                   $2.382    0.0 cents   $2.383 (6/01/2004)

Las Vegas                     $2.276   -0.2 cents   $2.279 (5/26/2004)