Gas Prices Soar 13 Cents to $1.59 Per Gallon in Northern California, says AAA
21 July 1999
Gas Prices Soar 13 Cents in Northern California, says AAA; Prices Boosted by Refinery Trouble, Crude Oil Costs and Summer Driving
SAN FRANCISCO--July 20, 1999--For the second time this year, Northern California gas prices have jumped dramatically as refinery problems plagued the West Coast.Gas prices in Northern California are up 13 cents in a month and now average $1.59 a gallon for self-serve regular unleaded, according to AAA of Northern California's monthly gas survey. This is 9 cents shy of the all-time high set in April.
"Gas prices have been pushed up by tight supplies, higher crude oil costs and strong summer demand," said AAA spokesman Paul Moreno. "The latest trouble comes as Bay Area refineries are still recovering from problems of last spring."
In one month, the San Francisco Bay Area average jumped a dime to $1.61, and is 44 cents higher than the national average of $1.17. The national average is up 3 cents in the same period.
The latest refinery problem occurred at Chevron's Richmond refinery, which was still recovering from a fire in March. Production at that unit is only about 30 percent of capacity. Tosco's Avon refinery, which suffered a fatal fire in February, is still not fully operational, say analysts.
Because California requires a unique blend of cleaner burning fuel, only California refineries normally make gasoline sold in the state. Analysts say this factor further isolates California's gas and oil market, making it more susceptible to tight supplies and rapid price fluctuation.
"There's not a bunch of surplus on the West Coast, and of what there is tends to be spoken for," said Alan Kovski, energy analyst with Kiplinger's Washington Letter.
Last spring, as gas supplies dwindled and prices shot up, imports of California-grade gasoline arrived from as far away as Europe as the high prices attracted sellers.
Oil prices have come up by about $8 a barrel since February. Members of the Organization of Petroleum Exporting Countries (OPEC) have succeeded in curtailing production in order to boost world oil prices. Analysts say that for every dollar increase in the prices of oil, gas prices will rise by about 2.5 cents per gallon.
In Northern California, local averages for regular unleaded self-serve gasoline (since June 22) are:
-- Chico, $1.57 (up 18 cents) -- Concord, $1.58 (up 14 cents) -- Eureka, $1.75 (up 17 cents) -- Fresno, $1.46 (up 14 cents) -- Lake Tahoe, $1.62 (up 11 cents) -- Modesto, $1.51 (up 18 cents) -- Monterey, $1.61 (up 11 cents) -- Oakland, $1.58 (up 7 cents) -- Redding, $1.64 (up 18 cents) -- Sacramento, $1.51 (up 14 cents) -- Salinas, $1.58 (up 12 cents) -- San Francisco, $1.69 (up 9 cents) -- San Jose, $1.60 (up a dime) -- San Mateo, $1.66 (up 9 cents) -- San Rafael, $1.65 (up 14 cents) -- Santa Cruz, $1.60 (up 13 cents) -- Santa Rosa, $1.62 (up 13 cents) -- Stockton, $1.49 (up 13 cents)
The Southern California average is $1.39, up 3 cents in one month. The average price for regular unleaded self-serve gasoline in Los Angeles is $1.36, according to the Automobile Club of Southern California.
Since June 22, Nevada gas prices are up 11 cents to $1.46 a gallon. In Utah, prices are up 2 cents to $1.27 a gallon in the same period, according to AAA's survey of nearly 500 gas stations in Northern California, Nevada and Utah.
Established nearly 100 years ago, AAA offers a wide array of automotive, travel, insurance and financial services. The California State Automobile Association serves nearly 4 million members and is the second largest regional affiliate of the national AAA organization.
Note to Editors: A chart showing 12 months of city averages is available on request. Additional city and state averages are also available.
