Gas prices hold relatively steady

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Retail gasoline prices remained unchanged in California and were mostly stable around the rest of the U.S., marking the third straight week of little or no movement in fuel costs, the Energy Department said today.

The average cost of a gallon of self-serve regular gasoline in California remained at $2.34. That was $1.552 below the average price at this time last year. Nationally, the average fell a penny to $2.049 a gallon, or $1.554 below the average at this time last year.

Diesel costs continued to fall, reflecting the nation’s economic malaise. The average price of a gallon of diesel fuel in California fell 2 cents to $2.32 a gallon, or $2.07 below the year-earlier price. Nationally, the average price for diesel also dropped 2 cents to $2.201, which was $1.976 under the year-earlier price.

Analysts said retail gasoline and crude oil futures could fall more in the next few weeks based in part on swine flu concerns.

‘If people are afraid to travel and they just stay home, it could have a major impact on the travel industry and oil and gasoline demand,’ said Phil Flynn, vice president and senior market analyst for the Alaron Trading in Chicago.

Oil markets were already reacting negatively to the swine flu news and to the dollar’s rise against foreign currency, Flynn said. Light, sweet crude for June delivery fell $1.41 to $50.14 a barrel on the New York Mercantile Exchange today.

-- Ron White