Remember the anticipation for $4 a gallon gas? The new milestone appears to be $4.50, according to the latest report from AAA of Northern California.
The record-setting pace of gas prices in California continues to spiral upward, setting new records daily, according to the June report from AAA of Northern California, which tracks fuel costs as a service to consumers. The statewide average cost for a gallon of regular gasoline is now a record high of $4.47, a 53-cent increase from the last AAA gas price report on May 13.
"There are several reasons for the continued record breaking pace of gasoline prices," said Michael Geeser, AAA of Northern California spokesperson. "These include the low value of the U.S. dollar compared with international currencies, the growing demand for gasoline and oil in Asia, and the heavy trading of oil and other commodities in the market."
Crude oil continues to drive retail fuel prices. The price of crude fell from $135 a barrel, set on May 22 with news of decreasing numbers of Memorial Day travelers as well as lower gasoline consumption. Those reports, in addition to the study by the Commodities Future Trading Commission, caused traders to wonder if oil was becoming highly over priced.
But the commodity market is volatile, especially oil. Even though there was a decrease in demand, the reported threat by Israel to attack Iran led oil prices to jump by almost $11 on Friday, June 6th, the biggest one-day gain ever in dollar terms for the price of oil. The rule of thumb in the crude oil - gasoline relationship is for every dollar a barrel of crude oil goes up, gasoline usually follows with an increase of 2.5 cents a gallon.
The most expensive average gas price in the California communities where AAA monitors fuel costs is in Tahoe City and Yreka, where unleaded gas sells for $4.60 a gallon, a 50-cent increase from last month's report. The lowest price among Northern California cities tracked by AAA is in Pleasanton, where gas costs an average of $4.36 per gallon.
Throughout Northern California, the average price is $4.46, up 50 cents since the last AAA gas price report. In the Bay Area, the average price is $4.45, an increase of 43 cents from last month.
The nationwide average price of self-serve regular gasoline is $4.04, a 31-cent increase from last month's report.
The least expensive gasoline in the country is found in Casper, Wyoming, where the average price of gas is $3.79. The highest average price in the nation is in Tahoe City and Yreka, California where the price is $4.60.
AAA's Fuel Gauge Report is the most comprehensive retail gasoline survey available, with over 85,000 self-serve stations surveyed everyday nationwide. Data is provided in cooperation with OPIS Energy Group and Wright Express, LLC.
AAA of Northern California offers a wide array of automotive, travel, insurance, financial services and consumer discounts to more than 4 million members. AAA has been a leader and advocate for the safety and security of all travelers since it was founded more than 100 years ago.
