San Diego Gas Prices Slowly Drifting Lower
Wednesday, October 17, 2012
Aired 10/18/12 on KPBS News.
San Diego's average gas price dropped nearly three cents a gallon today, to $4.59.
SAN DIEGO The average price of gas in San Diego has retreated 13 cents a gallon over the past nine days.
Industry watchers say wholesale gas prices are down sharply from when the super spike in prices crested in early October. In fact, wholesale prices are 30 cents a gallon below where they were before the price surge began.
Branded gas stations likely lost money during the fast run-up in prices two weeks ago, but are making up those losses on this side of the price spike.
"They price to what the market will bear and right now Californians are apparently getting used to paying over four bucks a gallon. And the major oil companies are completely taking advantage of it," said Bob Van der Valk.
Prices are expected to fall steadily over the next few weeks, according to Van der Valk, in large part because California pollution regulators are allowing winter blend fuel to be sold. Retail prices could fall a dollar a gallon by Thanksgiving, he said.