Gas prices remain high in Northern California

February 16, 2006

By Brigid Gaffikin, Bay City News Service

Fuel prices across Northern California rose through Feb. 14, with the Bay Area hit hard by an average price increase of some 27 cents per gallon since January, according to the AAA of Northern California's February gas price report.

Statewide, the average cost of regular unleaded is $2.56, one cent higher than the average Bay Area price, according to AAA spokesman Sean Comey.

That state average is some 27 cents higher than the national average price of $2.29 a gallon - which is some three cents less than January's national average price.

Even if Bay Area residents find gas prices hard to stomach, other Californians are faced with even higher prices. Eureka, South Lake Tahoe and Yreka have the state's highest gas prices, between $2.70 and $2.80 a gallon.

And prices this month are much lower than the state's record high of $3.05 a gallon on Sept. 9.

Consumers looking for cheaper gas should shop aggressively for the best value, Comey said. Comey doesn't recommend motorists drive for miles to save a few cents, but said comparison shopping is important to getting a good deal.

In the Bay Area, Pleasanton is perhaps the best place to fill up at the pump, with the average gas price a low $2.56 a gallon, according to the report.

Gas prices vary for a number of complex reasons, ranging from international pressure on supply to the U.S. to competition in local gas markets, Comey said.

When it comes to setting prices, there is a long chain of responsibility, which ends with the retailer, he said.

Retailers have told Comey that "a lot of it has to do with competition" - if "the station across the street" has low prices, there's more incentive for all other stations to keep prices low.

Oil and gas companies also use so-called "zone pricing" to determine what sort of prices particular local markets can handle, Comey said.

A free tool for consumers to check the latest gas prices is available on the AAA's national Web site at http://www.aaa.com/gasprices.

Copyright © 2006 by Bay City News, Inc. -- Republication, Rebroadcast or any other Reuse without the express written consent of Bay City News, Inc. is prohibited.

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