The price at the California gas pump continues to be the most expensive in the nation.
At mid week the average gas price in California was $3.86 per gallon of unleaded gasoline, according to AAA Northern California. The average per gallon on Tuesday was $3.80.
AAA Northern California spokeswoman Cynthia Harris noted that Tuesday’s price was a $0.36 jump in one week, and $0.06 higher since last month’s AAA Northern California gas survey on July 10.
The surging prices have caused some concern over an economic ripple effect. During the height of the recession, soaring gas prices furthered a drop in consumer spending. So far, however, local business owners have seen little they can attribute to the pumps.
“This year hasn’t been bad,” observed Audrey Gonzalez, general manager at Skylark Shores Resort in Lakeport. “We’ve been pretty steady.”
There are great discrepancies around the state and Lake County has yet to experience price spikes. According to Gaspricewatch.com, the average gas price in Lakeport was $3.28, although Automotive.com placed it at $3.25 — both well below the statewide mark.
Around the county, mid week averages hovered around $3.35, with a high of $3.53 in Middletown. Prices ranged across the region from $3.36 per gallon in Sacramento to $3.43 per gallon in Vallejo.
The least expensive average price in Northern California was in Marysville, where regular unleaded gasoline is $3.18 per gallon, according to AAA. San Francisco registered the highest price at $3.62 per gallon.
By comparison, Wednesday’s national average price for regular unleaded gasoline was $2.78 per gallon. The average was just fractions of a penny more than a week ago and is at the lowest mark for this date in nearly five years, Harris said. The national average has fallen for 19 of the past 30 days and is less than this year’s peak price of $2.80 per gallon on June 15.
“Drivers in California are once again weathering sharp increases in gas prices this past week due to reports of tightening supply in the state,” Harris said in a statement. “This recent surge has drawn the attention of the California Energy Commission, which is now investigating the fundamentals behind this spike.”
Early reports cited by AAA indicated that although refineries exceeded last year’s production rates, a “higher than expected” demand for gasoline has resulted in significant drawdowns in supply. Distribution systems have been unable to keep pace, according to AAA.
Suppliers often operate in “just-in-time” gasoline inventories — supply is delivered only as demand requires — which limits storage costs, but can lead to significant spikes in price when supply and demand are out of balance, Harris said. Gas prices will likely continue to rise in the region until supply issues are resolved.
Gonzalez noted that when prices at the pump last approached the $4 mark, the hike did influence hotel occupancy. Although the number of tourists and anglers did not drop, the average length of stay fell as guests cut seven days down to three or four.
“It’s tougher for the fishermen — they also have to fill their boats,” Gonzalez said. “A few were camping out.”
Harris noted that negotiations with Iran are said to be nearing a conclusion and could include the lifting of sanctions that would return Iranian crude oil to an “already oversupplied global market.” The Iranian negotiations, as well as current political conditions in Greece, have the potential to lower gas prices, according to AAA.
Jessica Rogness is a writer for The Reporter in Vacaville
