Pump prices fall in state amid switch in formula
California motorists saw nearly a nickel’s worth of relief at the gas pumps over the last week, the Energy Department said Monday, while prices nationwide were propped up by a rebound in fuel costs in the Midwest.
The average price of a gallon of self-serve regular gasoline in California fell 4.7 cents to $2.491, according to the agency’s weekly survey of filling stations. For the first time in 2007, the statewide average slipped below the year-earlier price -- a difference of 2.2 cents.
Experts said California drivers were benefiting from the annual switch from a winter blend to a summer blend of gasoline.
“Refiners are trying to get rid of their winter fuel. There are ample supplies right now, and that is why prices have been dropping,” said Carol Thorp, a spokeswoman for the Automobile Club of Southern California.
Nationwide, the gas-price average was unchanged over the week at $2.165, more than 19 cents below the average price during the same week in 2006.
The Midwest was the reason. Price wars had driven gas costs down, but last week they rebounded, up 8.9 cents to $2.081 a gallon. It was the only part of the country that experienced an increase.
Gasoline prices have been falling this year, reflecting declining oil costs.
In New York futures trading Monday, oil fell as investors grabbed profits and a Saudi Arabian official expressed comfort with the current price range.
Light sweet crude for March delivery closed down $1.41 to $54.01 a barrel after Prince Turki al Faisal told reporters at a reception in Washington sponsored by the U.S.-Arab Chamber of Commerce that “the present level of oil prices is adequate.”
Phil Flynn, vice president and senior market analyst for Alaron Trading Corp., said such comments weren’t surprising.
“If Saudi Arabia had its way they would love to lock the price of oil where it is today,” Flynn said. “We can still see economic growth. They still make a lot of money, and the competition from alternative fuels would start to diminish.”
