Gas Prices in San Diego Reach Lowest for Memorial Day Since 2021

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Current fuel prices at a San Diego gas station on Memorial Day

News Summary

The average price of a gallon of gasoline in San Diego County on Memorial Day hit $4.793, the lowest since 2021. Following recent fluctuations, prices have dropped by 5.1 cents over the past nine days. Although current prices are lower than last year, refinery shutdowns and regulatory measures may lead to future increases. Consumers are advised to adopt fuel-saving strategies as summertime approaches, raising concerns about further price hikes.

San Diego – The average price of a gallon of self-serve regular gasoline in San Diego County on Memorial Day reached $4.793, marking the lowest figure for the holiday since 2021. This price comes after an end to a streak of eight decreases in nine days with a slight uptick of two-tenths of a cent recorded on Monday.

In the nine days preceding Memorial Day, gas prices in the region had declined by 5.1 cents, which included a minor drop of two-tenths of a cent just a day earlier. This recent decrease followed a different period of price increases that totaled 10.5 cents over the previous days. Despite this fluctuation, the current average price remains 3 cents lower than one week ago, 2.7 cents higher than a month prior, and a significantly lower 31.4 cents than the same time last year.

Over the past year, San Diego’s gas prices have seen a dramatic decline of $1.641 since reaching a record high of $6.434 on October 5, 2022. Last year, the average price for Memorial Day was noted as $5.108, which stands as the second-highest since 2021, trailing just behind the high average of $6.075 recorded in 2022. In 2021, the average price was notably lower at $4.186.

As for national trends, the average gasoline price across the United States dipped to $3.179, aligning with the lowest prices seen on a Memorial Day since 2021. This national figure has experienced a decline of 1.7 cents over the last three days, reflecting stability with no changes noted from the previous week. The national average price is 2.6 cents higher than one month ago but remains 41.3 cents lower than a year ago. It has also decreased by $1.837 since reaching a peak of $5.016 on June 14, 2022.

Current Market Influences

The current state of crude oil supply is exceeding demand, a factor contributing to stable fuel prices at the pump. However, gas prices in California are expected to rise due to planned refinery shutdowns and a transition to renewable fuels. Notably, Valero has announced the closure of its Benicia refinery in Northern California next year, while Phillips 66 has indicated the shutdown of two of its refineries by the close of this year. Together, these facilities account for approximately 18% of California’s crude oil capacity.

Regulatory Measures and Future Predictions

In response to concerns about soaring fuel prices, California Governor Gavin Newsom has enacted measures aimed at monitoring and regulating oil companies to avert price gouging. New legislation, specifically Senate Bill X1-2, gives the California Energy Commission the authority to impose penalties on oil companies if they are found to have excessive refining margins.

Despite these actions, Californians remain apprehensive about historically high gasoline prices, which have recently averaged around $4.86. Furthermore, analysts estimate that gas prices may escalate to over $8 per gallon by the end of 2026 if current refinery closures and regulations continue to impact the market. The impending summer driving season typically brings an increase in fuel demand, suggesting further potential price fluctuations.

Fuel-Saving Strategies

Consumers looking to mitigate their fuel expenses can adopt several strategies recommended by experts. These include obeying speed limits, packing vehicles efficiently for trips, and ensuring vehicles are well-maintained. By taking these steps, drivers can help curb the costs associated with rising gasoline prices.