WALNUT CREEK, Calif. – Gas prices are experiencing a decline in the heat of summer, with California’s average price for a gallon of regular gasoline now at $4.50. Officials say this marks a decrease of three cents from where prices were last week.
“While the state’s excise tax increased by 1.6 cents a gallon at the beginning of the month, California gas prices are actually trending much lower than last summer, when gasoline was 23 cents higher per gallon than it is today,” Doug Johnson, spokesperson for AAA Mountain West Group, said. He added, “Meanwhile, the impact of new stricter air quality regulations–which went into effect July 1– on gas prices remains unknown.”
Nationally, the average price for a gallon of regular gasoline has decreased by one cent to $3.16 compared to last week. The current prices are reminiscent of the summer of 2021, which was the last time seasonal gas prices were this low.
There is a low-pressure system off the Gulf Coast that could potentially impact prices if it strengthens, but the likelihood is low.
In California, gas prices vary by city, with San Francisco at $4.68, Oakland at $4.56, and San Jose at $4.51. Sacramento reports a price of $4.46, while Fresno is at $4.57 and Stockton at $4.34.
According to the Energy Information Administration (EIA), gasoline demand has decreased from 9.15 million barrels per day last week to 8.48 million. Meanwhile, the total domestic gasoline supply has increased from 229.5 million barrels to 232.9 million. Despite this, gasoline production averaged 9.1 million barrels per day last week.
On the oil market front, the price of West Texas Intermediate (WTI) fell by 14 cents, settling at $66.38 a barrel. The EIA reports a drop in crude oil inventories by 3.9 million barrels from last week, with the U.S. crude oil inventories currently about 8% below the five-year average for this time of year.
For those driving electric vehicles, the national average cost per kilowatt hour at public charging stations remained stable at 36 cents last week, with California slightly higher at 38 cents.
California continues to lead as the nation’s most expensive gasoline market, followed by Hawaii and Washington. Conversely, Mississippi and Oklahoma are among the least expensive markets.
Drivers seeking current gas and electric charging prices along their routes can use the AAA Mobile App, which is now available on CarPlay. For more information on fuel prices, visit GasPrices.AAA.com, and for local news releases, check mwg.aaa.com/news/press-release.