Gas prices drop, will stay ‘relatively cheap’ through summer

California gasoline is the costliest in the continental United States, but the pump price fell 24 cents a gallon in the past month and should remain “relatively cheap” through summer and into the fall, AAA Northern California said Thursday.

At a statewide average of $2.64 for a gallon of regular gas, the price was down a nickel from last week, nearly a quarter since mid-July and more than 90 cents from a year ago, according to the auto association’s Fuel Gauge Report.

Only in Hawaii, at $2.73 a gallon Thursday, were motorists paying more to fill their tanks. In a dozen states, gas was below $2 a gallon, the lowest being in South Carolina at $1.82.

In Santa Rosa, gas averaged $2.66, down 21 cents from a month ago and 71 cents cheaper than last year, the AAA report said.

About three dozen Santa Rosa gas stations were priced below that average, dipping as far as $2.21 and running as high as $2.81 a gallon, according to the GasBuddy.com website. Santa Rosa’s all-time high was $4.65 in October 2012.

Pump prices are “likely to remain relatively cheap through the remainder of the summer and into the fall,” said Cynthia Harris, a spokeswoman for AAA Northern California.

Barring a “major market-moving event,” like a strong hurricane or rising geopolitical tensions overseas, gas prices should remain in consumer-friendly territory, she said.

Winter blend gas, which is cheaper to produce, will go on sale at Sonoma County stations in October, also supporting the downward trend.

California pump prices have been dropping since a summer peak at $2.91 a gallon on July 9, said Allison Mac, a petroleum analyst for GasBuddy.

Crude oil prices have remained low, in the $40-a-barrel range through the summer, she said, and there have been no glitches in California oil refinery operations, which can quickly impact pump prices, she said.

A surge in production from traditional oil giants like Saudi Arabia and Iraq as well as places like the U.S. and Canada, has pressured the market and kept oil prices below $50 a barrel for much of the summer, the Wall Street Journal reported.

Meanwhile, as the summer driving season ends and students return to school, U.S. gasoline demand will, as usual, decline, Mac said.

You can reach Staff Writer Guy Kovner at 707-521-5457 or guy.kovner@pressdemocrat.com. On Twitter @guykovner.