August 9, 2007

Fourteen states top California in gas prices

California’s dip in prices mirrors national decline

By Christina Brown
Times Intern

As national gasoline prices continue to decline, California ranks 15th in the average price of gas, according to a recent AAA report.

California gas prices are usually one of the highest in the nation, but despite fluctuating refinery production, supply this summer has been high compared to other years, according to the California Energy Commission.

The average price of regular gas in Northern California in July was $3.15, down 15 cents from the previous month, and in the Bay Area the average price was $3.36, down 16 cents. Both of these values have continued to decline since AAA calculated those averages earlier last month.

Colorado, Connecticut, Hawaii, Iowa, Illinois, Kansas, Michigan, Minnesota, North Dakota, Nebraska, New Mexico, New York, South Dakota and Wisconsin all have higher gas prices than California. There have been a series of fires, some caused by lightning, and power losses at Midwest refineries that have decreased production, driving prices higher than usual in these states.

Though there have been some problems at California refineries, the state is still pumping out more gasoline than in previous years. “There is a record amount of gasoline being produced,” said Ron Planting, an economist at the American Petroleum Institute. “Though the price of crude oil is actually going up, supply is [also] going up, so there has been a sharp decline nationally [in gas prices].”

In mid-July national gasoline production rose by 0.8 percent after declines in May and June, and refinery utilization grew to 91.8 percent.

“Unfortunately, this reprieve from the recent cycle of rising prices may already be over,” said Sean Comey, spokesperson for AAA of Northern California. “Prices have actually begun to increase over the last few days, so even though we’re paying less than a month ago the cost of filling up is on the rise again.”

In an effort to follow consumer trends, Rotten Robbie has begun offering biodiesel, 20 percent vegetable oil and 80 percent regular fuel, at seven of their Bay Area locations. Rotten Robbie has been selling biodiesel for the same cost as regular diesel. Though the consumer response has “not been earthshaking” said Steve White, vice president of Rotten Robbie, “We are trying to provide what the customer wants and interest seems to be going in that direction.”

Most cars made after 1994 have compatible fuel lines to use biodiesel, but Rotten Robbie suggests customers check with their vehicle manufacturer before using the fuel. Cars perform similarly when using biodiesel as with regular diesel, but also produce cleaner emissions and maintain better engine lubrication.

One of many Web sites aiming to help consumers find the best price during these expensive times is SanJoseGasPrices.com, which shows which stations have the lowest and highest gas prices that day, and also provides information about average gas prices in other cities across the nation.