Average LA County gas price sees largest decrease since October 2022

City News Service
Friday, October 6, 2023
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After spiking to alarming levels just last week, oil prices are suddenly in free-fall mode. The dramatic reversal should bring relief to drivers (and nervous central bankers) very soon.

The average price of a gallon of self-serve regular gasoline in Los Angeles County on Friday recorded its largest decrease since Oct. 20, 2022, dropping 6.2 cents to $6.083, decreasing for the seventh consecutive day.

The average price has dropped 23.2 cents over the past seven days, including 5.1 cents Thursday, according to figures from the AAA and Oil Price Information Service.

The decreasing prices follow a run of 23 increases in 25 days totaling 91.8 cents that boosted the average price to its highest amount since Oct. 11, 2022.

Despite the streak of decreases, the average price is 65.3 cents more than one month ago. It is 40.8 cents less than one year ago and has dropped 41.1 cents since rising to a record $6.494 on Oct. 5, 2022.

The seventh consecutive decrease dropped the Orange County average price under $6 for the first time since Sept. 22, decreasing 6.8 cents to $5.942. It has dropped 34.6 cents over the past seven days, including 7.5 cents Thursday.

Despite the streak of decreases, the Orange County average price is 55.6 cents more than one month ago. It is 49.4 cents less than one year ago and has dropped 51.7 cents since rising to a record $6.459 on Oct. 5, 2022.

The decreasing prices stem from Gov. Gavin Newsom sending a letter to the California Air Resources Board Sept. 28 directing it to allow refineries to begin making and distributing winter-blend gasoline, which is cheaper to produce.

Stations normally cannot start selling winter blend gas until Nov. 1.

"Los Angeles wholesale gasoline prices (Thursday) plunged to their lowest levels since early May, when pump prices were averaging $4.70 to $4.80 a gallon," said Doug Shupe, the Automobile Club of Southern California's corporate communications manager.

"In most areas of Southern California today, it should be easy to find gas prices less than $5.70 a gallon, and a few stations are charging less than $5 a gallon."

The national average price dropped for the 16th time in 18 days, decreasing 2.2 cents to $3.746. It has dropped 13.5 cents over the past 18 days, including 1.7 cents Thursday.

The national average price is 8.6 cents less than one week ago, 5.7 cents lower than one month ago and 12.1 cents below what it was one year ago. It has dropped $1.27 since rising to a record $5.016 on June 14, 2022.