Gas prices on the rise again
By Caitilin McAdoo, Bay City News Service
July 12, 2006
Gas prices have been inching up again after dropping slightly
at the end of June, bringing the statewide average cost for a
gallon of unleaded gasoline back to $3.26, according to a report
from AAA Northern California.
Although the average price of gasoline has gone up eight cents
in the past two weeks, it is the same price as it was by the end
of the last reporting period in June, according to AAA.
The Bay Area average for a gallon of regular unleaded is currently
The most expensive place to fill up a tank in Northern California
is in South Lake Tahoe, where regular unleaded is $3.40 per gallon.
Pleasanton and Vallejo both had the lowest average price among
Northern California communities, according to AAA. AAA of Northern
California spokesman Sean Comey said that the price of gasoline
in California has not dropped below $3 a gallon in nearly three
months and gas continues to be twice as expensive as it was four
Despite a relatively abundant supply of gasoline in California,
the statewide average price is 29 cents above the national average
The rise in gas prices has not, however, kept motorists off the
road. In fact, according to data from the U.S. Energy Information
Administration, gasoline consumption has continued to rise, AAA
AAA has attributed the hike in gas prices to a number of factors,
including the economics of supply and demand, instability in oil
producing regions of the world, the threat of hurricanes on oil
and gas production facilities, the low value of the dollar relative
to other currencies, the high cost of the fuel additive ethanol,
and speculative investment in petroleum-based commodities. Most
of these factors are expected to continue to effect fuel prices
for some time, AAA reported.
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