California

California Gas Prices Continue to Decrease: Report

Bay Area drivers know all too well the pain at the pump, as California typically has the highest prices in the country for gasoline.

But lately, it has been a different story.

Customers at the Arco station on Capitol Expressway and Center Road said Sunday night they could not believe that the price for gasoline was only $3.17 per gallon there.

"Gas, $3.17, you can’t beat it," driver Julia Ramirez said. "We’ve been in in line for like 10 minutes already. But it’s worth it.”

Customers in Mill Valley saw even lower prices--$3.15 a gallon on Redwood Highway.

Since the beginning of the month, gas prices have dropped 15 cents a gallon. Going back to the end of June, the decrease is about 50 cents a gallon.

“The real reason gas prices are falling right now at really steep rates than we've seen in years is due to the free fall in crude oil prices,” AAA spokesman Michael Green said.

A barrel of crude was about $85 a few days ago, compared to $120 a barrel when summer began.

Analysts said global demand is slowing, while production has maintained, leading to too much supply.

A bigger drop could be in store in the coming weeks, perhaps another 20 cents a gallon for consumers.

If this trend continues, could Californians be seeing a “two” at the beginning of their gas prices?

“That’s just a flashback. That’s just straight up a flashback," driver Michael Encinas said. "That’s just like trying to remember like when it was $1 or something.”

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