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Record-High Gas Prices for January in Northern California, AAA Reports

21 January 1998

Record-High Gas Prices for January in Northern California, AAA Reports

    SAN FRANCISCO, Jan. 21 -- Gasoline prices in Northern
California are at a record high for the month of January -- despite continued
declines in crude oil prices, AAA of Northern California reported today.
    "Retail gasoline averages $1.37 a gallon for regular unleaded self-serve
in Northern California -- an all-time high for January," said AAA spokesman
Vernon C. Thompson.
    Crude supplies are up date to rising production by OPEC members.  Demand
is lower due to economic troubles in Asia, less driving and a mild winter in
the United States, and easing tensions in the Middle East, according to Alan
Kovski of "The Oil Daily," a Washington, D.C.-based industry newsletter.
    Crude oil prices have fallen about $4 a barrel in three months, said
Kovski, with the benchmark "West Texas Intermediate" crude selling for about
$16.50 a barrel, or almost 20 percent lower since prices started downward in
November.
    Northern California's prices are 2 cents lower than one month ago.  The
national average fell nearly 6 cents since mid-December, according to AAA,
Northern California prices are 21 cents higher than the U.S. average and a
nickel higher than this time last year, according to AAA.
    California's higher prices may be partly explained by mandated
reformulated gasoline -- a cleaner-burning fuel -- which oil industry experts
say costs 5 to 10 cents more per gallon to produce.
    This special blend of gasoline was phased in during early 1996.
    The previous record high for January was $1.34, set in 1991 during the
Gulf War and again one year ago.
    In Northern California, January city averages for regular unleaded
self-serve gasoline are:  Chico, $1.28 (down 3 cents); Concord, $1.34
(unchanged); Eureka, $1.44 (unchanged); Fresno, $1.27 (down 4 cents); Lake
Tahoe, $1.28 (down 4 cents); Monterey, $1.43 (down a penny); Oakland,
$1.39 (unchanged); Redding, $1.37 (down a penny); Sacramento, $1.35 (down
3 cents), San Francisco, $1.45 (down 2 cents); San Jose, $1.41 (down a penny);
San Mateo, $1.44 (down 3 cents); San Rafael, $1.42 (down a penny); Santa Cruz,
$1.39 (down 4 cents); Santa Rosa, $1.31 (down a nickel); and Stockton,
$1.30 (down a nickel).
    Since mid-December, gas prices in Nevada are down 3 cents a gallon to
$1.35, while prices in Utah fell six cents a gallon to $1.23, according to
AAA's monthly survey of more than 400 gasoline stations in Northern
California, Nevada and Utah.
    The AAA affiliate for Northern California, Nevada and Utah serves nearly
four million members with an array of automotive, travel and insurance
services.

SOURCE  AAA