WALNUT CREEK, Calif. – Huge month to month jumps in gas prices can be seen in many metro areas across Northern California, according to the latest report from AAA Northern California, which tracks gas prices as a service to consumers.

According to AAA, all but four Northern California metro areas tracked by the organization saw double digit increases at the pump over the past month.

The Golden State’s average for a gallon of regular, unleaded gasoline is $3.95, up 17 cents since last month’s AAA report on Aug. 9. For perspective, that’s 93 cents higher than California’s average price on this date last year.

Among all 50 states, California has the third highest state average price for regular, unleaded gasoline. Hawaii is first and Alaska is second.

Northern California gas prices are now averaging $3.93, up 14 cents from last month. In the San Francisco Bay Area, motorists can expect to pay an average price of $4, which is a 12-cent increase. The national average price of $3.64 is down by one cent, which is 93 cents more than the national price on this date last year, when it was $2.71.

“Although demand for gasoline has fallen over the past week, which would typically help keep prices down, storms in the Gulf and East Coasts have applied upward pressure on gasoline prices in several parts of the country,” explained AAA Northern California spokesperson Matt Skryja. “In California, the state’s average price for gasoline has recently been relatively steady.”

Oil is a global commodity that is traded around the world. Economic fears among investors typically means the price per barrel drops, and the price of gas usually follows.

Recently, concerns over the condition of European economies caused the price of crude to drop, but the price then rallied as the value of the U.S. dollar dropped.

Commodities are traded in U.S. dollars. As the dollar weakens, relative to currencies abroad, the effective price of these products (including crude oil) for investors outside of the U.S. becomes cheaper. Oil futures become a more attractive investment and prices are pressured upward.

However, some market analysts feel the oil market will move lower in the long-term. Adding credence to this bearish long-term forecast is news from the Department of Energy’s (DOE’s) Energy Information Administration. It lowered its forecast for both oil prices and demand growth over the next 16 months, citing lower growth projections for domestic and global economies.

The least expensive average price in Northern California can be found in Marysville where regular is $3.85. Of all the metro areas in Northern California where gas prices are tracked by AAA, Eureka and South Lake Tahoe both have an average price of $4.08, the highest in Northern California.

This is also the highest price in the lower 48 states. The least expensive gasoline in the country is found in St. Louis, Missouri, where the average price of gas is $3.25. Wailuku, Hawaii, holds the dubious crown for the highest average price in the nation, at $4.39 per gallon.

One way consumers can reduce the amount of money they spend on fuel is to shop aggressively for the lowest price. AAA now offers text alerts via mobile phone for low gas prices in your area. Sign up today at www.aaa.com/gas.

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Written by: Editor

Published: 19 September 2011