July 15, 2025 Breaking News, Latest News, and Videos

Gas Prices Hit Record Lows Across Los Angeles But Could Soar In New Year:

Smiling faces are aplenty at Westside gas stations with prices falling below $3 a gallon and continuing to plummet as crude oil sits at their lowest levels since 2009 and local demand declines.

The average price has dropped 73 consecutive days, shedding 76.5 cents during the streak, according to figures from American Automobile Association (AAA) and Oil Price Information Service.

Gas spectators are warning that such joy may be short lived however, with impending Cap-and-Trade carbon credits expecting to hit consumers come Jan. 1.

Local wholesale prices are at their lowest levels since July 2009 with Westside areas experiencing gas prices below $3 a gallon after five straight months of price declines, according to the Automobile Club of Southern California’s Weekend Gas Watch.

The retail state average fell to $2.95 a gallon for regular gasoline Wednesday, 9.1 cents less than last week.

The average price of self-serve regular gasoline in the Los Angeles-Long Beach area was at $2.98 per gallon, which is 10.3 cents less than last week, 27 cents less than last month, and 56 cents lower than last year, according to the Auto Club. In San Diego, the average price is $3.03, which is 4.9 cents less than last week, 27 cents lower than last month, and 67 cents lower than last year.

“OPEC actions to continue oil production at current levels has pushed crude oil prices below $70 a barrel, providing even more downward pressure for gas prices,” said Auto Club spokesman Jeffrey Spring. “Here in Southern California, local refineries seem to be operating at full capacity.”

The decrease in prices has helped elevate overall consumer optimism about the economy and that benefits all retailers, explained Jeff Lenard, Vice President, Strategic Industry Initiatives, National Association of Convenience Stores (NACS).

The elevated optimism also benefits convenience stores and in-store sales, he said.

“While lower gas prices don’t make consumers more hungry or more thirsty, it does make them more likely to satisfy their hunger or thirst at the store, instead of waiting till they get home,” Lenard explained. “There may also be a lift from the 25 percent of consumers who pay for gas by cash. They generally purchase a specific dollar amount – for instance, $20 – and as prices have fallen, they may not just spend all $20 on gas but on other items inside the store.”

The introduction of smartphone apps such as GasBuddy, Gas Guru, and AAA’s own cheap gas finding app is also allowing consumers to hunt for the best prices around.

“Gas prices have an impact on consumer sentiment unlike any other product,” Lenard explained. “You don’t see that about any other product, whether milk, bread, or eggs.”

One of the challenges facing gas retailers aside from the low-price battle is that some stations are “branded” and locked into one distributor for their supply, said Marie Montgomery, spokesperson for the Automobile Club of Southern California.

“Price variation at gas stations is caused by many of the same factors as price variation of groceries or other commodities,” she said. “While the product itself is essentially the same because the formula used is regulated by the state Air Resources Board, some stations have higher overhead costs because of their locations, some stations have less or more competition nearby, and some stations are “branded”, i.e. Shell and Chevron, while others are independent which can cause cost differences.”

On a national level, California usually has the most expensive gas prices in the U.S. except for Alaska and Hawaii, Montgomery said.

According to gasbuddy.com, the cheapest average gas price on Dec. 10 in the country was in St. Louis, Missouri at $2.20 a gallon. The five cheapest states by average regular price were Missouri ($2.32/gallon), Oklahoma ($2.40/gallon), Mississippi ($2.41/gallon), Texas ($2.42/gallon), and South Carolina ($2.43/gallon).

With current falling price wars aside, looming in the corner of 2015 are California’s Cap-and-Trade regulations that will see carbon credit costs more than likely passed on to consumers from Jan. 1.

The California Air Resources Board’s Cap-and-Trade credits will be levied on all gas distribution businesses with a move to reducing the total emissions from cars and trucks using gasoline and diesel in California.

“The cap places a hard limit on how much gasoline and diesel can be sold,” according to CA Fuel Facts.

Carbon credit auctions have already been taking place as part of the program with consumers expected to pick up some of the slack, explained Tom Kloza, Global Head of Energy Analysis at Oil Price Information Service.

“Based on the auctions and quotas, it looks as though it’s going to be 10-12 cents extra per gallon,” Kloza said.

“This is the first time that we have seen this in the U.S,” he added. “The rest of the country is watching.”

While it is difficult to speculate on anything in the open market, with less than 30 days to go until the program takes effect, Kloza estimates that the initial increase won’t be “the end of the world.”

That is, until crude oil prices increase.

Statistically, spring sees gas prices begin their upward drive and with the next OPEC meeting scheduled for June 2015, Kloza said that high prices may not be too far away.

Currently the $63 a barrel price for crude is the lowest since 2009, but with speculation that the June OPEC meeting could see a break up of the current cartel, Kloza’s advice is to enjoy the low prices and fill-up your tanks while you can.

in News
<>Related Posts

California Hits Two-Thirds Clean Energy Milestone

July 15, 2025

July 15, 2025

This year, clean energy has powered the state for an average of seven hours daily, with over 90% of days...

Venice Beach to Host First Medal at 2028 Olympics

July 15, 2025

July 15, 2025

Venice Beach, known for its vibrant boardwalk, will kick off the 844 ticketed events, hosting the triathlon along its coastline...

Santa Monica Man Arrested for Allegedly Exporting Electronics to Iran

July 14, 2025

July 14, 2025

Ostovari, identified as the CEO of a Tehran-based engineering firm, allegedly orchestrated the scheme since 2018  A 66-year-old Santa Monica...

Federal Judge Sides with Santa Monica, Other Local Governments Against Immigration Raids

July 14, 2025

July 14, 2025

Santa Monica Mayor Lana Negrete praised the ruling, saying it reaffirmed the city’s commitment to protecting residents from unjust detention...

Veterans Tech Group to Launch Los Angeles Chapter with Networking Event

July 14, 2025

July 14, 2025

Founded in San Francisco, VetsInTech operates 20 chapters nationwide and claims more than 60,000 veterans VetsInTech, a national nonprofit that...

Film Review: Jurassic World: Rebirth

July 13, 2025

July 13, 2025

“The story is simplistic and predictive, and that’s all it needs to be, because the age-old battle to survive the...

Santa Monica Assault Suspect Faces Multiple Charges, Authorities Seek Additional Victims

July 13, 2025

July 13, 2025

Marbra allegedly assaulted a 52-year-old woman on the Strand in Santa Monica, facing a felony count of assault with intent...

SM.a.r.t.Column: Does the Rand Corporation have a future in Santa Monica?

July 13, 2025

July 13, 2025

“Although no one said it outright, it is clear to all that RAND is feeling—and will continue to feel—the impact...

County Health Leaders Decry Federal Policy Barring Undocumented from Programs

July 12, 2025

July 12, 2025

The officials argued the policy jeopardizes care for all residents, noting it could deter people—regardless of status—from seeking treatment  Leaders...

County Supervisors Move to Preserve Measure J Amid Charter Error

July 12, 2025

July 12, 2025

Measure J mandates that at least 10% of the county’s locally generated, unrestricted funds be allocated to community investments like...

LA Medical Center Seeks Help Identifying Unconscious Patient

July 12, 2025

July 12, 2025

He has been unconscious since admission, and staff have been unable to determine his identity Los Angeles General Medical Center,...

Mayor Bass Issues Directive to Protect Immigrant Communities

July 12, 2025

July 12, 2025

The order expands access to city resources for affected families and requests records from ICE, including details on arrests Mayor...

Downtown Santa Monica CEO Andrew Thomas to Step Down

July 11, 2025

July 11, 2025

Thomas, who rejoined DTSM, Inc. in 2022, oversaw the introduction of a private security program, expanded homeless outreach, and boosted...

Conservancy to Tour Historic Miles Playhouse at State of the City Event

July 11, 2025

July 11, 2025

Built in 1929, the Miles Playhouse serves as the centerpiece of Lincoln Park The Santa Monica Conservancy will offer 15-minute...

Sen. Ben Allen Highlights Challenges, Economic Gains for LA28 Olympics

July 11, 2025

July 11, 2025

The remarks came during the first informational hearing of the Senate’s Special Committee on International Sporting Events State Sen. Ben...