Media Contact: Cynthia Harris

Emeryville, CA., September 11, 2012

After a very challenging month of volatile pump prices, Northern California motorists are starting to see a slowdown in rising gas prices. According to the latest report from AAA Northern California, which tracks gas prices as a service to consumers, every metro area in Northern California, except two, saw an increase of at least four cents over the past month.

California’s average for a gallon of regular, unleaded gasoline is $4.17, up seven cents since last month’s AAA report on August14. For perspective, that’s 22 cents more than California’s average price on this date last year. Among all 50 states, California has the second highest state average price for regular, unleaded gasoline. Hawaii is first at $4.37.

Northern California gas prices are now averaging $4.18, up eight cents from last month. In the San Francisco Bay Area, motorists can expect to pay an average price of $4.25, which is a 7-cent increase. The national average price of $3.84 is up by 14 cents, which is 18 cents more than the national price on this date last year, when it was $3.66.

“A weaker global economy typically means that demand for crude oil is less than it would be in a stronger economy,” said AAA Northern California spokesperson Cynthia Harris. “Global forces aside, here in the United States, demand for gasoline has been up slightly over the past week.”

AAA expects the national average to decline in the coming months as demand drops off following the busy summer driving period. During this time, refineries switch from summer-blend to less expensive winter-blend gasoline and the hurricane season draws to a close.

Conflicting economic factors last week resulted in little change in oil prices. Continued bearish economic news, both domestically and internationally, pressured prices lower, while tight supplies and rumors of a potential third round of quantitative easing by the Federal Reserve (Fed), designed to stimulate the U.S. economy, pressured prices higher. Quantitative easing by the Fed decreases the value of the U.S. dollar, and it is an attempt by a central bank to stimulate an economy by injecting newly created money into the economy. Crude oil futures are traded in U.S. dollars, and as the dollar weakens against foreign currencies, these futures become relatively less expensive to purchase and are a more attractive investment.

The least expensive average price in Northern California can be found in Ukiah where regular is $4.08 per gallon in that metro area. Of all the metro areas in Northern California where gas prices are tracked by AAA, Eureka has the highest average price at $4.42. The least expensive gasoline in the country is found El Paso Texas, metro area. The average price of gas in that metro area is $3.50. Chicago, Illinois, holds the dubious crown for the highest average price in the nation, at $4.48 per gallon.

AAA Monthly Gas Price Averages: September 11, 2012

To get the best mileage possible, AAA recommends keeping tires at the proper pressure suggested by the vehicle manufacturer, performing routine maintenance and making sure fluids are clean and belts and hoses are in good repair. The way you drive can also impact fuel economy. Smooth driving to avoid sudden stops and starts, combining trips and lightening your load also help conserve gasoline.

AAA’s Fuel Gauge Report is the most comprehensive retail gasoline survey available, with over 100,000 self-serve stations surveyed every day, nationwide. Data is provided in cooperation with OPIS Energy Group and Wright Express, LLC.

AAA Northern California offers a wide array of automotive, travel, insurance, DMV, financial services and consumer discounts to over 4 million members. AAA has been a leader and advocate for the safety and security of all travelers since it was founded more than 100 years ago.