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Local Gas Prices Inch Downward

POSTED: 11:57 am PDT September 7, 2008
UPDATED: 12:35 pm PDT September 7, 2008

The average price of a gallon of self-serve unleaded regular gasoline in San Diego County declined for the 59th time in the past 61 days Saturday, dropping seven-tenths of a cent to $3.821.

Saturday's average is 31.1 cents less than at this time last month and 80.9 cents less than the record high of $4.63 set on June 19, but 96.8 cents more than at this time last year, the Oil Price Information Service reported.

After falling for 56 consecutive days, the average rose six-tenths of a cent from Monday to Tuesday and one-tenth of a cent from Tuesday to Wednesday, then resumed its decline. The average fell six-tenths of a cent from Friday to Saturday.

Analysts attribute the declining pump price to the lower price for crude oil, along with reduced demand.

The price of a barrel of light, sweet crude for October delivery fell $1.66 Friday to $106.23 on the New York Mercantile Exchange, the lowest closing price since early April. Since hitting a record high of $147.27 a barrel on July 11, the price of crude has declined 28 percent.

The lower crude oil price is also a result of lower demand, caused in part by the worldwide economic downturn.

Crude oil costs account for two-thirds to three-quarters of the price of a gallon of gasoline, according to Tupper Hull, director of strategic communications for the Western States Petroleum Association, a trade association representing major oil companies in six Western states.

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