Gas Prices Will Continue to Drop - KCOY Santa Maria, Santa Barbara, San Luis Obispo - News

Gas Prices Will Continue to Drop

SALINAS, Calif.- AAA reports gas prices will continue to sprial down, following months of volatility in California.

According to the latest report from AAA Northern California, which tracks gas prices as a service to consumers, every metro area in Northern California saw a decrease of at least 69 cents over the past month.

California's average for a gallon of regular, unleaded gasoline is $3.85, down 82 cents since last month's AAA report on October 9. For perspective, that's 2 cents more than California's average price on this date last year.

Northern California gas prices are now averaging $3.82, down 81 cents from last month. In the San Francisco Bay Area, motorists can expect to pay an average price of $3.98, which is a 76 cent decrease from last month. The California state average price of $3.85 is down two cents, which is 41 cents more than the national price of unleaded regular gasoline, $3.44.

 "Lower crude oil prices, the seasonal switch from summer to winter blend, and reduced demand have added to the recent downward pressure on retail gasoline prices," says AAA Northern spokesperson Cynthia Harris in a news release Tuesday. "With continued signs of global economic weakness and a somewhat stronger U.S. dollar, crude oil prices have continued to move lower."

AAA predicts that the national average price will be $3.25-3.40 by Thanksgiving and $3.10-3.30 by the end of the year.