Los Angeles gas prices fall for 16th day in a row, likely to keep dropping
The average price of gasoline in Los Angeles has fallen sharply in nearly 15 days, likely keeping low prices a key part of California’s future economic plan.
The average price was $3.61 a gallon on Monday, down from $4.35 on Friday and $4.87 on Tuesday, according to GasBuddy, which publishes daily sales and gas prices in its database. It’s the 16th consecutive day that gasoline prices have declined.
The state’s average price for regular-grade gasoline was $3.55 a gallon on Monday, down $1 from Friday and $1 from last Tuesday, according to GasBuddy.
“I can tell you that the market does seem to be driving a shift on this one,” said Chris Koos, managing broker with the North Bay Commodity Corp., referring to the strong gasoline prices.
A day earlier on Feb. 22, the average price of California gasoline was $4.38 a gallon. Since then, it’s dropped to $4.05 on Tuesday, a drop of $3.23 from Friday.
According to GasBuddy, California supplies in January were 7.5 percent higher than the same time last year, a sign that demand has been weaker in the state’s recent drought year.
Gas prices are falling because gasoline-powered cars have gotten more fuel-efficient, which helps explain why the $4.05 price for regular-grade gasoline on Tuesday was a record low, according to Koos.
“As a result, consumer appetite for gasoline is not being met by the supply of gasoline,” he said.
The low prices are making it easier for California to focus on its future economic plan, rather than continuing to focus on cutting demand and supporting its current recovery.
“It tells us that they are not about to cut back demand in the short term, and they believe this will be their future and that there is a greater market for gasoline,” Koos said.
Gas prices are also dropping because consumers have become more careful about buying gas, saving more money for a longer period of time, and because of the state’s economic plan.
“What we do know