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California Gas Prices to Set Record

National Average 15 Cents Above Last Year

By Joe Benton
ConsumerAffairs.com

December 29, 2006

• Gas Prices Slide 8 Percent from Record • Gas Prices Creep Down • Oil Price Trend May Be Good News For Consumers • Gasoline Drops Below $3.90 a Gallon • Gas Prices Pull Back Slowly • Oil Prices Fall As Storm Misses Rigs • Latest Gas Price Round-Up • 'Run Your Car On Water' Scheme Could Leave Consumers All Wet • Unregulated Energy Trading Blamed for Much of Gas Price Gusher • Airlines Join Effort To Limit Oil Speculators • Questions Raised about MyGallons.com • 'Hypermiling' Is Dangerous, Says AAA • Struggling Drivers Blame Washington for High Gas Prices • What’s Really Fueling Those Sky-High Oil Prices • Credit Card Fees at the Pump are a 'Hidden Tax' on Consumers • Survey: 3 Out of 4 Angry About High Gas Prices • $2 A Gallon Gas Possible, Analysts Tell Congress • Speculators Buy More Oil Contracts Than Oil Companies • Saudis to Pump More Oil • Limiting Oil Speculators Gains Ground • Congress To Probe Oil Price Spike • Oil Market 'Saturated,' Iran Claims • Feds See No Relief from High Gas Prices • High Gas Prices Could Mean Lower Insurance Rates • High Gas Prices Good For Kia, Honda • Gas Prices Rip Past $4 and Keep Climbing • Administration, OPEC See Different Causes Of Oil Surge • Feds Probing Possible Oil Market Manipulation • Beware of Fuel Sippers Sipping High-Test • Retailers Respond to High Gas Prices with Discounts, Promotions • Rushing Into a Smaller Car Too Soon May Not Save Money • Hybrid Sales and Prices Climb in Lockstep with Gas Prices • Truckers Bemoan Burden of High Diesel Costs • Gas Prices Biting into Worker Productivity • Consumers Warned About Gas-Saving Schemes • Is Tony Soprano Controlling Gas Prices? • Oil & Gas: The New Bubble • Critics: New Federal Gas Mileage Standard Falls Short • Consumers Feeling Pain of Skyrocketing Gas Prices • New Gas Price Record Forecasts Expensive Summer Driving Season --- • More ...

Throughout the country, gasoline prices ended 2006 almost 15 cents higher than they were at the end of 2005 as gas prices in California headed for new record levels for the year.

"2006 will set new records for California gas prices both in actual and inflation-adjusted terms, with the yearly price averaging $2.81 a gallon and the all-time peak price reached in May at $3.33, according to the California Energy Commission," said Auto Club of Southern California spokeswoman Carol Thorp.

"The previous yearly record price was set in 1981, when motorists paid $1.35 a gallon on average for gasoline -- in 2006 dollars, that was $2.64 a gallon," she said.

Gas prices continued up in California and along the west coast for a third straight week, although the increase is not as steep as in the week before Christmas, according to AAA.

Average prices across the country have dropped six cents since spiking at $2.39 the day after Christmas. The national average price of regular self serve gasoline is now $2.33, up almost a dime in a month.

Mid-grade sells for an average of $2.48 and premium $2.57.

The most expensive gallon of gasoline is on sale in Woodbridge, Illinois for $3.31. The cheapest gallon is found in Jackson, Missouri for $1.99.

Here is a look at some gasoline prices from around the country in the ConsumerAffairs.com Gas Price Round-Up.

Texas: The end of the year is bringing higher pump prices in some Texas cities and lower prices in others, with the city of Amarillo showing the biggest decline, according to the AAA Texas.

The average retail price of regular, self-serve gasoline in Texas is $2.22, up almost a penny.

The Austin area has the most expensive gas at $2.25 per gallon that is about the same as last week.

El Paso has the cheapest fuel at $2.17 per gallon, relatively unchanged compared to last week. Amarillo, which had the highest average price for a gallon of regular self serve last week, dropped almost four cents to $2.21 per gallon this week.

"The price of crude oil fell to its lowest level in more than a month this week to $60 a barrel, amid forecasts of mild US weather," said Rose Rougeau, spokesperson for AAA Texas. "Barring any geo-political or weather related forces, lower crude prices should help add downward pressure to retail gas prices."

California: The average price of self-serve regular gasoline in the Los Angeles-Long Beach area is $2.64, which is 3.8 cents higher than last week, 15 cents higher than last month, and 41 cents higher than last year.

On the Central Coast, the average price is $2.84, up three cents from last week, 13 cents above last month, and 46 cents higher than last year.

In the Inland Empire, the average price is $2.65, 3.2 cents above last week, 15 cents higher than last month, and 39 cents higher than last year.

Arizona: For the first time in six weeks, Arizona gas prices seem to be on a steady route.

Arizona drivers are paying an average of $2.35 per gallon, 0.7 cents more than last week. Previous weeks have seen a rise of at least 1 cent per gallon.

Scottsdale drivers are paying the highest price at $2.41 per gallon, while Tucson drivers enjoy the lowest statewide average at $2.25.

Because of the mild weather easing demand on heating fuel and a steady supply of oil, AAA believes motorists will see pump prices near their current levels for the next few weeks.

Idaho: Gas prices in Idaho this year averaged almost 25 cents more per gallon than in 2005, AAA officials said.

Idahoans, on average, paid $2.53 a gallon for self-serve regular gasoline in 2006, compared to $2.29 a gallon last year.

In August, the state broke its record for the highest average gas price when a gallon of gas reached $3.02.

But Idaho's average price in 2006 — $2.53 a gallon — still was lower than the national average of $2.56 a gallon, according to AAA.

U.S. average prices were up sharply during the first part of the year, compared to prices in Idaho. Both peaked above the $3 mark in late August and early September, but Idaho's prices stayed high while prices in others states dropped along with crude oil prices.

Idaho's current average price is $2.36 a gallon, compared to a national average price of $2.33.

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