Even though California gas prices remain the highest in the nation, abundant supplies of gasoline have contributed to starkly lower gas prices statewide during this summer driving season.

This week's state prices are registering at $ 2.66 on average for a gallon of unleaded gasoline-that’s $0.22 less than prices since AAA Northern California’s latest monthly gas survey of July 12.
 
Northern California’s average price for a gallon of regular unleaded gasoline is $2.63 – that’s $0.19 less than last month’s AAA reported price on July 12. The highest recorded price ever registered in the state of California was in October 2012, at $4.67 a gallon for unleaded regular.
    
The least expensive average price in Northern California can be found in Marysville, where regular unleaded gasoline is $2.25 per gallon. Of all metro areas tracked by AAA in Northern California, San Francisco, registering at $2.83 per gallon of unleaded regular, and South Lake Tahoe at $2.91 per gallon, are showing the two highest gas prices.

“With gasoline supplies high and oil prices low, pump prices are likely to remain relatively cheap through the remainder of the summer and into the fall,” said Cynthia Harris, AAA Northern California spokesperson. “Provided the next month does not bring a major market-moving event, like a major hurricane or escalating geopolitical tensions overseas, prices are likely to remain at relatively low levels.”
 
West Coast pumps feature both the highest prices in the country and the most dramatic yearly savings. The largest year-over-year declines in the nation are seen in California (-95 cents).

Contributing to these substantial yearly savings is the fact that there have been relatively few refinery issues this summer compared to a number of regional issues in the summer of 2015.

The national average price of gas has held relatively steady over the past week and has declined on just one of the past four days. The national average price for regular unleaded gasoline is $2.12 per gallon, which is the lowest price for this date since 2004.

Strong global oil production and a strengthening U.S. dollar have contributed to West Texas Intermediate crude oil trading near lows not seen since Spring.

Recent news suggests that OPEC may again consider production limits by cartel members in an effort to boost oil prices by curbing supply.

Similar efforts earlier this year were unsuccessful, as members opted to preserve market share by maintaining production, which has preserved the global state of oversupply and resulted in low oil prices.

If OPEC members agree to limit production, crude oil prices could again rise as demand moves into balance with supply.

At the close of Friday’s formal trading session on the NYMEX WTI was down 13 cents to settle at $41.80 per barrel.  

To get the best mileage possible, AAA recommends keeping tires at the proper pressure suggested by the vehicle manufacturer, performing routine maintenance and making sure fluids are clean and belts and hoses are in good repair. The way you drive can also impact fuel economy. Smooth driving to avoid sudden stops and starts, combining trips and lightening your load also help conserve gasoline.

AAA’s Fuel Gauge Report is the most comprehensive retail gasoline survey available, with over 100,000 self-serve stations surveyed every day, nationwide. Data is provided in cooperation with OPIS Energy Group and Wright Express, LLC.

AAA Northern California offers a wide array of automotive, travel, insurance, DMV, financial services and consumer discounts to more than 4.5 million members. AAA has been a leader and advocate for the safety and security of all travelers since it was founded 116 years ago.