SAN FRANCISCO – The latest report from AAA Northern California finds most gas prices throughout the state appear to have plateaued after a slow, uphill climb that lasted several days.

Since AAA’s last survey, all but one metro area where AAA tracks gas prices in Northern California saw double-digit price increases. Most cities in California are now above the $3.00 a gallon mark.

 

According to the latest report from AAA Northern California, which tracks gasoline prices as a service to consumers, California’s average gas price is the third highest among all 50 states.

The Golden State’s average for a gallon of regular unleaded gasoline is averaging $3.05, up 16 cents since last month’s report on July 14. For perspective, that’s $1.07 less than California’s average price on this date last year, when it was $4.12.

 

Northern California gas prices are now averaging $3.01, up 13 cents from last month. In the San Francisco Bay Area, motorists can expect to pay an average price of $3.13. The national average price of $2.64 is up by 12 cents, which is still $1.17 cheaper than the national price on this date last year, when it was $3.81.

 

AAA analysts feel the recent oil rally was based more on optimism about the future prospects for the economy than on current supply and demand.

Typically, as the economy improves more oil is used. If investors think the economy is improving they will buy more oil because it’s a commodity they think will be in demand. News that China was increasing its manufacturing activity and some possible positive news about manufacturing in the U.S. inspired investors to buy.

The weak dollar also encouraged investors to purchase oil. A weak dollar means buyers using stronger currencies can get more for their money. That activity also tends to drive up the price. Late last week and early this week, a strengthening dollar helped stall the upward surge in oil prices.

 

“Barring unforeseen events, retail gasoline prices should mimic the stability of oil prices in the short term, with the national average staying around or slightly above $2.50 per gallon,” said AAA Northern California spokesperson Matt Skryja. “The president of the Organization of Petroleum Exporting Countries (OPEC) is further enforcing this notion; he seemed to imply the cartel won’t likely restrict its oil supply at a meeting next month as long as the price per barrel remains steady.”

 

The least expensive average price in Northern California can be found in Chico, Marysville, and Modesto, where unleaded is $2.97.

Of all the metro areas in Northern California where gas prices are tracked by AAA, Eureka had the highest average price at $3.30, which is also the highest price in the lower 48 states.

The least expensive gasoline in the country is found in Springfield, Missouri where the average price of gas is $2.38. Wailuku, Hawaii, holds the crown for the highest average price in the nation, with $3.56 per gallon.